Sam Bankman-Fried expresses regret about filing for bankruptcy

By: Michael Wilson

Sam Bankman-Fried expresses regret about filing for bankruptcy

November 17, 2022 4:32 AM

In a comprehensive interview, the ex-CEO made some shocking claims.


Sam Bankman-Fried, the former CEO of FTX, has expressed tremendous regret for the company's filing for Chapter 11 bankruptcy last week, calling it his "worst single fuckup."


Bankman-Fried allegedly discussed the Chapter 11 bankruptcy filing on November 11, his thoughts on regulators, ethics, how FTX and Alameda "gambled with client money," and the FTX hack in a comprehensive interview with VOX published on November 16.


Screenshots of a Twitter exchange between VOX reporter Kelsey Piper and former FTX CEO Sam Bankman-Fried show that Bankman-Fried admitted that, among his many blunders, the largest was following advice and declaring Chapter 11 bankruptcy.


I messed up horribly on numerous occasions," Bankman-Fried said. If you asked me, "you know what was probably my worst fuckup?"


"This is the one thing that everyone encouraged me to just do [...] chapter 11."


Bankman-Fried claimed that "everything would be 70% rectified right now," that "withdrawals would be opening up in a month with clients entirely whole," and that he would not have filed for chapter 11 bankruptcy.


"However, I filed, and now those in power are attempting to burn it down out of embarrassment."


Bankman-Fried reportedly sought $8 billion from investors in emergency capital to fill a gap after admitting a "liquidity issue" on November 8. He even reportedly offered his personal riches to "make consumers and investors whole."


Bankman-Fried said, "essentially all that counts for the rest of my life" is getting the $8 billion, and he has two weeks to do it.


For his part, FTX CEO and chief restructuring officer John Ray issued a statement on November 16 reminding the public that Bankman-Fried "has no ongoing role at [FTX], FTX US, or Alameda Research Ltd. and does not speak on their behalf."


Bankman-Fried, shifting the conversation to other aspects of the interview, said that his advocacy for rules was "simply PR," and went on to say:


"Fuck regulators; they do nothing but make the situation worse and offer no protection to consumers."


Hours later, on November 16, Bankman-Fried appeared to backtrack on those comments, tweeting:


"Being a regulator is incredibly challenging. Regulating entire industries that expand faster than their authority allows is an impossible task."

 


Furthermore, Bankman-Fried verified that a hack was responsible for the funds being transferred out of FTX, speculating that it was the work of a "ex-employee, or malware on an ex-machine." employee's


Even though the post has since been deleted, the business's ex-CEO still stands by his original assertion that FTX has never invested clients' monies, saying it "was factually accurate" because Alameda was the entity investing the cash.