Sam Bankman-Fried, a disgraced cryptocurrency executive, claims he intends to launch a new company in order to generate enough revenue to compensate FTX crash victims. The 30-year-old is the subject of many government inquiries investigating the financial management of his former employer.
The former millionaire admits he was "not
nearly as good as I thought I was" but denies fraud while speaking at a
luxurious compound in the Bahamas.
He acknowledges "ruminating at night"
about the possibility of being arrested.
Customers could swap fiat currency for cryptocurrencies like Bitcoin on the FTX cryptocurrency exchange. With daily cryptocurrency trading of around $10 billion, it was the second-largest in the world. But last month it was revealed that FTX and Mr Bankman-own Fried's firm - Alameda Research - were financially shaky.
Everything fell apart in just eight days, and
bankruptcy papers were filed.
More than a million FTX customers are reportedly
locked out of their crypto wallets and unable to access their money.
Inviting the BBC to the Bahamas apartment building
where he currently resides, Mr. Bankman-Fried expressed his wish to find a
means to compensate FTX subscribers.
"If users haven't gotten anything in return,
I'll be considering what I can do for them while also considering how we might
improve the globe. And I believe that at the absolute least, I owe it to FTX
users to treat them fairly "He informed me.
When asked if he intended to launch a new firm to
generate the funds needed to repay investors, he replied: "To be able to
accomplish that, I would do anything. And I'll make an effort, if I can."
The FTX affair has been referred to as "one of
the most sudden and hardest collapses in the history of corporate America"
by bankruptcy attorneys.
They claim that Mr. Bankman-Fried has treated the
business like "his own personal domain."
The former CEO agreed on Friday to appear at the
hearings on the collapsed exchange that the US Senate Banking Committee has
requested he speak at next week.
Allegations that Mr. Bankman-Alameda Fried's
Research hedge fund used FTX clients' money to place dangerous financial wagers
are at the top of a lengthy list of other alleged shortcomings.
According to a former senior FTX employee who
collaborated with Mr. Bankman-Fried, the former CEO must have known that
Alameda Research was taking money from FTX customers.
When Mr. Bankman-Fried claimed in recent interviews
that he was unaware of the exchanges of cash and cryptocurrency between the
firms, he accused him of lying.
No, that's not accurate, Mr. Bankman-Fried said,
adding that as CEO, he was ultimately accountable for any financial
mismanagement. In any case, he responded, "That's on me."
When asked if he was dishonest or unqualified, he
responded: "I didn't intend for any of this to occur, and I don't believe
I committed fraud on purpose. Definitely not as proficient as I had believed I
was."
In the past six days, the American has conducted
nine in-depth interviews with himself.
His crew claims that due to "security
concerns," they were forced to move to an undisclosed area within the
opulent resort where he resides.
Telephoto reporters have captured images of him in
his apartment from the water, and at least two YouTubers have gained entry to
the building to record films.
With no access to his bank accounts and "less
than $100K remaining," Mr. Bankman-Fried, who hails from a rich family,
claims to be concerned about his own personal circumstances.
He said, "There's some time at night pondering,
yeah, but when I get up during the day, I try and focus, be as productive as I
can, and disregard things that are out of my control," when asked whether
he was prepared for the prospect of being arrested and going to jail.