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Sam Bankman-Fried, the disgraced founder of FTX, responded to critics who have likened him to the late Ponzi schemer Bernie Madoff while deflecting concerns about whether he may be heading to prison.
During a Thursday interview with ABC’s “Good Morning America,” the former 30-year-old crypto kingpin said that FTX’s demise “reads quite differently” from the aftermath of Madoff’s plan to defraud investors of billions of dollars during the Great Recession.
This is despite persisting concerns over the billions of dollars that FTX owes its numerous creditors in bankruptcy, as well as the at least $1 billion in customer money that remain unaccounted for.
ABC’s George Stephanopoulos told Bankman-Fried, “Many individuals see Bernie Madoff in you.”
Bankman-Fried responded, “Yeah, I don’t think that’s who I am at all, but I see why they say it.” “People lost a substantial amount of money. Ultimately, there is the question of what occurred, why it occurred, who was responsible, and what triggered the meltdown. I believe it reads rather differently.”
“There was no genuine business involved in the traditional Bernie Madoff narrative,” Bankman-Fried remarked. According to my understanding, the entire situation was a Ponzi scam. That was a legitimate business, FTX.”
The ABC interview is part of Bankman-continuous Fried’s apology tour amid a time of intensifying legal and regulatory scrutiny over his activities in the days preceding FTX’s bankruptcy. Before addressing direct questions regarding his mismanagement, the ex-billionaire fidgeted in his seat and made extended pauses throughout the conversation.
At one point, Stephanopoulos questioned Bankman-Fried as to whether he feared jail time as a result of the FTX catastrophe.
Sam Bankman-Fried is subject to strict legal and regulatory oversight.
GMA
Bankman-Fried said, “I am currently concerned about a number of issues.” “Also, as much as possible, I’m concentrating on what I can do in the future to be helpful, while allowing the regulatory and legal procedures to unfold as they will.”
Stephanopoulos demanded a direct response from Bankman-Fried as to whether he was aware that FTX customer funds were being used to settle dangerous wagers made by the platform’s sibling cryptocurrency trading business Alameda Research, whose CEO was his ex-girlfriend Caroline Ellison.
Before responding directly to concerns regarding his administration of FTX, Sam Bankman-Fried took extended pauses.
GMA
After an extended pause, Bankman-Fried stated that he “was unaware of any inappropriate usage of customer cash.”
Bankman-Fried also reaffirmed his assertion that the collapse of FTX has virtually wiped off his money.
“I anticipate having nothing at the conclusion of this,” he remarked.
George Stephanopoulos interrogated SBF over his activities.
GMA
Reuters reported last month that Bankman-Fried had moved $10 billion in FTX customer cash to Alameda Research in stealth. At least $1 billion of the funds have vanished.
Notable detractors include incoming FTX CEO John Ray III, a veteran of Enron’s bankruptcy who stated that the company’s accounting methods and corporate governance standards under Bankman-leadership Fried’s were the worst he had ever witnessed in his career.
Caroline Ellison was the chief executive officer of Alameda Research.
Sam Bankman-Fried and his companions operated FTX from a luxurious apartment.
Seaside Real Estate/ Bahamas MLS
Former workers and court documents indicate that FTX spent $300 million on luxurious real estate in the Bahamas and a suite of staff amenities, including all-expenses-paid trips, free massages, and an on-site barber.
Bankman-Fried stated during the interview that he had not spent “any time or effort” on risk management at FTX.
Bankman-Fried also attended on Wednesday at the New York Times’ DealBook event, where he stated, “I never intended to conduct fraud.”
»Sam Bankman-Fried denies Bernie Madoff analogy, deflects queries about jail time«