Ex-FTX CEO says he didn’t ‘knowingly’ misuse clients’ funds

Nov 30, 2022, 5:27 PM | Updated: Dec 2, 2022, 6:56 am
FILE - The FTX Arena logo is seen where the Miami Heat basketball team plays Nov. 12, 2022, in Miam...

FILE - The FTX Arena logo is seen where the Miami Heat basketball team plays Nov. 12, 2022, in Miami. The former CEO of the failed cryptocurrency exchange FTX said Wednesday, Nov. 30, that he did not 'knowingly" misuse customers' funds, and claimed he believes his millions of angry customers will eventually be made whole. (AP Photo/Marta Lavandier, File)

(AP Photo/Marta Lavandier, File)

NEW YORK (AP) — The former CEO of the failed cryptocurrency exchange FTX said Wednesday that he did not “knowingly” misuse customers’ funds, and said he believes his millions of angry customers will eventually be made whole.

The comments from Sam Bankman-Fried came during an interview with Andrew Ross Sorkin at a conference put on by The New York Times. Bankman-Fried has done a handful of media interviews since FTX collapsed in mid-November, but Wednesday’s was his first video interview since it filed for bankruptcy protection on Nov. 11.

“I didn’t ever want to commit fraud on anyone. I was shocked at what happened this month,” Bankman-Fried said.

FTX failed in the cryptocurrency version of a bank run, when customers tried to withdraw their assets all at once because of growing doubts about the financial strength of the company and its affiliated trading arm, Alameda Research. Since its collapse, FTX’s new management has called the cryptocurrency exchange’s management a “complete failure of corporate controls.”

Bankman-Fried said that he took responsibility for FTX’s collapse and said he failed to grasp the amount of risk FTX and Alameda were taking on across both businesses. One of the accusations made against Bankman-Fried is that he arranged for Alameda to use customers’ assets in FTX to place bets in the market. Bankman-Fried told Sorkin he did not “knowingly” co-mingle customers’ assets with Alameda.

Exchanges like FTX are supposed to segregate customers’ deposits from any bets they place in the markets. Other financial companies have gotten into legal hot water for misusing customers deposits, one example being MF Global roughly 10 years ago.

“Whatever happened, why it happened, I had a duty to our stakeholders, our customers, our investors, the regulators of the world, to do right by them,” Bankman Fried said.

Sorkin pushed Bankman-Fried on how and when investors will get their money back, to which Bankman-Fried said he largely believed the U.S. affiliate of FTX was entirely solvent and could start processing withdrawals at once. As for the rest of FTX, which was significantly larger than the U.S. division, he said the fate of customers’ funds were largely out of his control at this point.

Bankman-Fried, who was once one of the richest people in the world on paper, now says he likely has less than $100,000 to his name after FTX’s failure. He’s getting by on one credit card while still in the Bahamas.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Sri Lankan government soldiers march carrying national flags during the 75th Independence Day cerem...
Associated Press

Sri Lanka marks independence anniversary amid economic woes

COLOMBO, Sri Lanka (AP) — Sri Lanka marked its 75th independence anniversary on Saturday as a bankrupt nation, with many citizens angry, anxious and in no mood to celebrate. Many Buddhists and Christian clergy had announced a boycott of the celebration in the capital, while activists and others expressed anger at what they see as […]
1 day ago
FILE - President Joe Biden delivers his first State of the Union address to a joint session of Cong...
Associated Press

Biden makes progress on ‘unity agenda’ outlined in 2022

WASHINGTON (AP) — A year ago, President Joe Biden used his first State of the Union address to push top Democratic priorities that were sure to face a battle in the narrowly divided Congress but he also laid out a four-pronged “unity agenda” that would be an easier sell. Biden’s unity goals would be hard […]
1 day ago
Associated Press

New California oil well ban put on hold for voters to decide

SACRAMENTO, Calif. (AP) — California’s new law banning new oil and gas wells near homes, schools and other community sites has been put on hold until after voters decide next year whether to throw it out, officials announced Friday. Opponents of Senate Bill 1137 gathered more than 623,000 valid voter signatures to put a referendum […]
1 day ago
FILE - Florida Gov. Ron DeSantis speaks after being sworn in to begin his second term during an ina...
Associated Press

Florida lawmakers to meet next week on Disney, immigration

TALLAHASSEE, Fla. (AP) — Florida lawmakers will meet next week to complete a state takeover of Walt Disney World’s self-governing district and debate proposals on immigration and election crimes, as Republican Gov. Ron DeSantis continues to leverage national political fissures ahead of an expected White House run. Republican leaders of the Legislature, in coordination with […]
1 day ago
FILE - Johnny Thai, 11, receives the Pfizer COVID-19 vaccine at a pediatric vaccine clinic for chil...
Associated Press

California won’t require COVID vaccine to attend schools

SACRAMENTO, Calif. (AP) — Children in California won’t have to get the coronavirus vaccine to attend schools, state public health officials confirmed Friday, ending one of the last major restrictions of the pandemic in the nation’s most populous state. Gov. Gavin Newsom first announced the policy in 2021, saying it would eventually apply to all […]
1 day ago
Part of the 988helpline.org website is photographed Friday, Feb. 3, 2023. A cyberattack caused a ne...
Associated Press

Feds say cyberattack caused suicide helpline’s outage

WASHINGTON (AP) — A cyberattack caused a nearly daylong outage of the nation’s new 988 mental health helpline late last year, federal officials told The Associated Press Friday. Lawmakers are now calling for the federal agency that oversees the program to prevent future attacks. “On December 1, the voice calling functionality of the 988 Lifeline […]
1 day ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
Ex-FTX CEO says he didn’t ‘knowingly’ misuse clients’ funds