Sam Bankman-Fried talks failures, FTX, CFTC, regulation and crypto

Sam Bankman-Fried talks failures, FTX, CFTC, regulation and crypto

Sam Bankman-Fried. Photo: Getty Images

Sam Bankman-Fried he had $100,000 in his bank account the last time he checked. In an interview, the former CEO of FTX pointed to personal failings and regulatory loopholes to explain his company’s downfall.

Why it matters: Bankman-Fried’s late Monday phone interview with Axios comes as FTX works through the mess bankruptcy process and the company’s creditors remain in the dark about what, if anything, they will be able to recover.

What is he talking about: “May I say a negative number?” he said when asked about his personal finances. “I mean, I have no idea. I don’t know. I had $100,000 in my bank account the last time I checked,” he said.

  • “It’s complicated. Basically everything I had was just related to the company,” he added.
  • His personal fortune reached at one point 26.5 billion dollars.

Yes, but: Bankman-Fried said regulation and proper oversight could have helped protect FTX from its collapse.

  • “I think one thing … if you looked at the reports and the CFTC applications, that would be very helpful here in terms of international rigor,” Bankman-Fried said.
  • “Certainly to some extent I wish there was someone other than me in charge of managing the conflict of interest,” he said, nodding to the bankruptcy court’s claim that he ran FTX as personal fiefdom.
  • “I would like to have more reporting and transparency to outside parties.”

Zoom in: Bankman-Fried, however, added that he bears most of the blame.

  • “I wish I had been more careful… Obviously I deeply regret this. I focused on volume and not on balance positions,” he said. “I should have been more responsible, and I should have been more aware of what was going on.”

Conclusion: Investors and creditors also have their share of regrets, with tens of billions in market value wiped out in a matter of days.

Read more from this interview in tomorrow’s Axios Pro Fintech Deals

Go deeper:

Bankman-Fried himself does not know what happened to his share of Twitter

Judge in FTX case guarantees privacy to clients, for now

FTX files for bankruptcy and Bankman-Fried resigns as CEO

#Sam #BankmanFried #talks #failures #FTX #CFTC #regulation #crypto

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