17 December 2022 14:42, UTC
Studying time: ~3 m
FTX founder Sam Bankman-Fried (SBF) was as soon as touted because the cryptocurrency king, a popularity that has eroded with the trade’s collapse leading to his arrest over fraud fees. Earlier than the collapse, Bankman-Fried had exuded confidence in regards to the buying and selling platform’s future, sharing the plans to develop FTX and his legacy.
Certainly, in an interview (min 23:40) with CNBC on September 16, Bankman-Fried famous that he doesn’t care about his legacy within the crypto area, sustaining his major focus was on creating impression.
“I dont give a [expletive] about legacy. I care in regards to the impression that I’ve however prefer it’s not just like the factor I attempt to remind myself of. On the finish of the day what issues is the impression I’ve,” he mentioned.
On the similar time, he shared his long-term imaginative and prescient about FTX’s future regardless of the buying and selling platform battling the prolonged crypto winter.
In line with SBF, the long-term plan was to ascertain FTX as a world platform that permits folks to entry liquidity in what he termed as ‘a complicated highly effective manner’. Apparently, FTX troubles started when the trade was hit with a liquidity crunch leading to customers being unable to withdraw their funds.
Moreover, Bankman-Fried famous that the trade supposed to develop into licensed in additional jurisdictions. Sooner or later, he alleged that FTX was essentially the most regulated platform globally.
“One piece of that is being a world platform the place folks can entry liquidity in a complicated, highly effective manner. One piece of that is being absolutely licensed, and you realize we expect we’re already by far essentially the most licensed crypto venue and possibly essentially the most licensed trade general, relying on the way you depend globally. We’re licensed in dozens of jurisdictions individually,” mentioned Bankman-Fried.
On this line, business gamers have lamented that the FTX scandal couldn’t have occurred within the first place with correct rules. On the similar time, the collapse has resulted in additional calls to manage the business at the same time as United States lawmakers proceed unveiling new crypto regulation payments.
Moreover, Bankman-Fried acknowledged that the aim of FTX was to construct a customer-friendly platform that may assist folks handle their funds simply and extra straightforwardly.
Notably, Bankman-Fried is dealing with allegations of misappropriation of buyer funds after FTX reportedly blended funds with SBF’s different agency Alameda Analysis. It’s value mentioning that SBF was arrested a day earlier than testifying earlier than Congress, the place he was meant to discuss the incident that resulted in FTX collapse.
Amid the crypto bear market, Bankman-Fried emerged as a key persona within the area, trying to avoid wasting companies dealing with chapter.
‘SBF is a manipulator’
On this line, United States Home of Consultant member Patrick McHenry acknowledged that SBF dedicated an old-school fraud leveraging new know-how. With Bankman-Fried being a key donor for various causes, the lawmaker famous that the FTX founder was a manipulator, one thing he alleged was seen in his latest media tour interviews.
“It exhibits that he was a manipulator of world-class capability and attempting to tug off one thing,” McHenry mentioned.
In the mean time, SBF stays behind bars after being charged with committing fraud in opposition to clients by misappropriating their funds to pay for bills and money owed. Primarily based on the costs, Ira Lee Sorkin, the lawyer who represented the perpetrator of the most important particular person Ponzi Scheme, Bernie Madoff, warned that SBF faces a few years in jail.
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Featured picture through CNBC YouTube