January 27, 2023

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Sam Bankman-Fried Discusses FTX Crash: Live Updates

Sam Bankman-Fried Discusses FTX Crash: Live Updates

attributed to him…Hiroko Masuiki/The New York Times

Sam Bankman-Fried, founder of the now-bankrupt cryptocurrency exchange FTX, told the DealBook Summit on Wednesday that the company’s collapse was due to a “colossal failure of oversight on my part.”

“Whatever happened, and why it happened, it was my duty to our stakeholders, our customers, our investors, and the regulators of the world to do it right,” he told Andrew Ross Sorkin via video from the Bahamas. “Obviously, I didn’t do a good job of it. I never tried to defraud anyone.”

“I am deeply sorry for what happened,” Mr. Bankman-Fried added, as he fidgeted and took the occasional drink from a can of Lacroix sparkling water.

Mounting losses at Alameda Research, the sister company to FTX he also controls, he said, left the trading firm with a large margin in FTX — essentially meaning that the cryptocurrency exchange was lending Alameda large sums of money.

He went out of his way not to mention Carolyn Ellison, the former CEO of Alameda Researchby name.

“I haven’t been running Alameda,” he said, “and I don’t know exactly what’s going on.” “I was nervous about the conflict of interest because of being so involved.”

“I wasn’t mixing up the money on purpose,” he added.