London Daily

Focus on the big picture.

Founder of bankrupt crypto firm FTX Sam Bankman-Fried breaks his silence, with thousands locked out of savings

Founder of bankrupt crypto firm FTX Sam Bankman-Fried breaks his silence, with thousands locked out of savings

FTX, a cryptocurrency exchange that operated around the world, collapsed as panicked traders pulled $6bn out of the company in just three days after a series of bombshell allegations.
A crypto entrepreneur says his net worth has fallen from more than $26bn to $100,000 after his company imploded.

Sam Bankman-Fried admitted it has been a "bad month" after FTX collapsed into bankruptcy, leaving thousands of people frozen out of their savings.

The 30-year-old, who once positioned himself as a saviour for stricken firms, has been accused of misusing customer funds and moving $10bn out of the company in secret.

At least $1bn is reported to have vanished.

Speaking at the New York Times' DealBook summit, Mr Bankman-Fried insisted that he has never tried to commit fraud and said he was "shocked" at how the crisis unfolded.

FTX has new management as it navigates bankruptcy, with its chief executive declaring that he had never seen "such a complete failure of corporate controls" during his 40-year career.

It has been claimed that funds belonging to FTX users were mixed with funds at Alameda Research, a trading firm that Mr Bankman-Fried also ran.

FTX, a cryptocurrency exchange that operated around the world, collapsed as panicked traders pulled $6bn out of the company in three days after a series of bombshell allegations.

Speaking via video link from the Bahamas, Mr Bankman-Fried said he now has "close to nothing" after his company's failure and is down to one working credit card.

He has admitted that his businesses "completely failed" when it came to risk management and said this was "pretty embarrassing in retrospect".

"Whatever happened, why it happened, I had a duty to our stakeholders, our customers, our investors, the regulators of the world, to do right by them," Mr Bankman-Fried added.

Although the embattled entrepreneur believes that American users should be able to get their money back in full, he has warned in other interviews that international customers may only get 20% to 25% of the money they had locked into FTX.

A number of companies in the cryptocurrency sector have collapsed in recent months, coinciding with a sharp drop in the value of Bitcoin.

Some businesses have been accused of offering interest rates on savings that were simply too good to be true, while others have been likened to "Ponzi schemes".

The Bahamas has now launched a criminal investigation into the circumstances surrounding FTX's demise.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Hello and welcome back. Here we are with your latest news update from around the world.
Hello and welcome back. Here are today's top stories from around the world, you don't want to miss:
UK PM Sunak and the Election Betting Scandal
Climate Activists Target Taylor Swift's Private Jet in UK
United States Bans Kaspersky Antivirus
US to Supply Taiwan with Suicide Drones Amid Rising Tensions with China
Bodyguard of UK Prime Minister Arrested for Alleged Election Betting
Global Displacement Crisis: Record Numbers in 2023
Muslim Community Leader Criticizes Nigel Farage for Undermining Muslims
Melinda Gates Discusses 'Horrible' Divorce from Bill Gates
Child Obesity Surge in England: A Deep Concern
U.S. Sues Adobe Over Hard-to-Cancel Subscriptions
Deadly Heat Wave Claims Dozens of Lives During Hajj Pilgrimage in Mecca
Here are today's top worldwide stories you don’t want to miss:.
World’s Largest Pilot Union Calls to Eliminate Terms Like ‘Cockpit’ and ‘Manpower’ for Equity
Woman Suing UK Intel Services Denies China Spy Allegations
Iran Sentences Nobel Laureate Narges Mohammadi to 1-Year Prison Term for Propaganda
News roundup
Good day, everyone! We've got some gripping stories for you today, spanning from the Middle East to Europe, and even a touch of Hollywood.
Britain’s Refugee Visa Rules Stranding Children in War Zones
UK Elections Predict ‘Electoral Extinction’ for PM Sunak’s Conservative Party
Italian Activist Ilaria Salis Returns Home After Election to European Parliament
Good morning!
England Faces Serbia in Euro Opener with Defensive Concerns
Dermatologist Warns Against Sunbed Usage
Fake Pro-Reform UK Social Accounts and Their Influence on Elections
UK Man Jailed for Non-Consensual Condom Removal
Reform UK Surpasses Conservatives in Historic Poll
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Taylor Swift Fans Create Seismic Activity in Edinburgh
Sunak Aide Under Investigation for Election Bet
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Johnson & Johnson Settles Talc Safety Claims for $700 Million
EU Urged to Welcome Skilled Russians to Weaken Putin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Israel Rescues Four Hostages from Gaza
Emmanuel Macron Calls for Snap Election
Jordan Bardella: Young Far-Right Leader Poised for Future Political Influence in France
World's Oldest Privately Owned Book Auctioned for $3.8 Million
Animal Rights Activists Deface King Charles' Portrait in Protest
Dutch Military Intel Uncovers Extensive Chinese Cyber Espionage
Turkish Student Arrested for Using AI to Cheat in University Exam
Rise in Dengue and Other Mosquito-Borne Diseases in Europe Due to Climate Change
EU Elections Overview: Far-Right Gains and Major Political Shifts
Far-Right National Rally Dominates France's EU Vote
Macron Calls Snap Legislative Elections After Far-Right Victory
Far-Right Gains Significantly in EU Election
UK Job Market Shows Signs of Recovery
×