SBF Wants To Launch A New Company To Reimburse FTX Collapse Victims




Sam Bankman-Fried, the founder and former CEO of the now-defunct cryptocurrency exchange FTX, has expressed his desire to launch a new company and make enough money to compensate those who lost money in the crash.

The ousted crypto chief admitted that he was “not nearly as capable” as he believed he was while speaking from the Bahamas. According to a BBC article, he said that he worries about being arrested when “ruminating at night,” although he denied committing any fraud. Sam threw in that,

“If users haven’t gotten Anything in return, I’ll consider what I can do for them and how we might improve the globe. And I believe that, at the absolute least, I owe it to FTX users to treat them fairly.”

After a week of rumours over the company’s health, FTX revealed that it had filed for Chapter 11 bankruptcy in Delaware at the beginning of November. FTX US was also involved in the proceedings, despite the previous CEO’s assertions that everything was alright with their US business.

It quickly came to light that the exchange had loaned up to $10 billion in client money to its linked trading company, Alameda Research, to finance dangerous bets. The suggested price is between 8 and 12 cents for every dollar of the deposit claims due to a $10 billion shortfall in its financial sheet.

SBF responded to the question of whether he planned to launch a new company to generate income in order to be able to reimburse those who were harmed by the FTX collapse: “Anything for the ability to do that, I suppose. And I’ll make an effort if I can.”

One of the most serious accusations made against SBF is that it used the funds from FTX clients to fund Alameda Research, a quantitative trading firm it formed that was meant to operate independently.

According to the BBC, a former senior employee of FTX who collaborated with SBF said that he must have known that Alameda Research was taking money from FTX customers.

Bankman-Fried refuted assertions that he was aware that Alameda was utilizing FTX user funds to execute dangerous transactions, saying, “No, it’s not accurate.” Any way you look at it, I’m responsible for that.

He responded when asked if he was dishonest or incompetent: “I didn’t intentionally conduct fraud, I don’t believe I intentionally committed fraud, and I didn’t want any of this to occur. Definitely not as proficient as I had believed I was.”

SBF Agrees To Testify House Committee Next Week
The committee said last month that it would convene a hearing to look into the demise of the cryptocurrency exchange FTX.

The committee stated that they anticipated hearing from the organizations and people involved, including Sam Bankman-Fried, the creator of FTX, Alameda Research, Binance, and others.

SBF warned that he might not show up since he is still “learning and reviewing” what transpired. He replied, “I would feel that it was my job to testify before the committee and explain once I had completed learning and examining what transpired.


About the author, Awais Rasheed

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