Sam Bankman-Fried is the founder of the FTX crypto exchange that collapsed. He has many regrets. But chief among them is the one that may have directly led to his company’s downfall.
Bankman-Fried privately criticised Changpeng Zhao, CEO of Binance, while lobbying for crypto regulation in Washington, D.C. Word about the whisper campaign got back to Zhao, who ultimately set off a run by FTX’s customers to withdraw their deposits by tweeting that he would sell off his huge holdings in that company’s in-house cryptocurrency, FTT.
The criticism “was not a good strategic move on my part,” Interview with Mr. Bankman Fried the New York Times published on MondayJust days after FTX declared bankrupt, he released the following statement. “I was pretty frustrated at a lot of what I saw happening, but I should’ve understood that it was not a good decision of me to express that.”
Bankman-Fried is now at the centre of the crisis. He is often called by crypto industry insiders his initials, SBF. Authorities in the United States and the Bahamas are looking into what happened to FTX earlier this year. It was valued at $32 Billion.
The company’s spectacular disintegration also set off major aftershocks across the crypto industry, which was already facing turbulence because of the sputtering economy. As soon as trouble at Bankman-Fried’s business became public, virtually every cryptocurrency immediately crashed in value.
Zhao offered to save the company last week after he had sparked the FTX run. After inspecting the books, Zhao withdrew his offer saying that he had serious financial problems.
According to two people interviewed by The Associated Press, Zhao posted a brief note on Signal chat with Bankman-Fried, his representative, and he simply used it to announce the news. New York Times: “Sam, I’m sorry, but we won’t be able to continue this deal. Way too many issues. CZ.”
In a message that was obtained by The, Bankman-Fried replied to the rejection by telling employees about the rejection. Times: “I shouldn’t throw stones in a glass house, so I’ll hold back a bit. Except to say: probably they never really planned to go through with the deal.”
In the few days since the bankruptcy, Bankman-Fried, who lost most of his $16 billion fortune in the collapse, said he’s taking it relatively well. “You would’ve thought that I’d be getting no sleep right now, and instead I’m getting some,” He stated. “It could be worse.”
Bankman-Fried also stated that he finds it relaxing to play the videogame Storybook Brawl—albeit from an undisclosed location out of fear for his safety.
“It helps me unwind a bit,” He stated. “It clears my mind.”
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