[Asia Economy Reporter Lee Ji-eun] Sam Bankman-Fried, the founder and former CEO of cryptocurrency exchange FTX, which filed for bankruptcy protection in a U.S. court, appeared in public for the first time since the bankruptcy. At this event, he clarified the suspicions surrounding FTX, stating, "I never intended to defraud anyone."
According to major foreign media including CNBC on the 30th (local time), former CEO Bankman-Fried held an interview with New York Times columnist Andrew Ross Sorkin and said, "While there were failures in risk management, I was confident that this (FTX) was a business that could thrive, so I was deeply shocked."
Currently, FTX is suspected of embezzling $10 billion (approximately 13 trillion won) of FTX customer deposits to invest in its cryptocurrency investment affiliate Alameda Research. The total customer deposits of FTX are estimated at $16 billion.
Regarding these allegations, former CEO Bankman-Fried stated, "We did not mix FTX customer deposits with Alameda Research’s funds," adding, "FTX and Alameda were much more closely connected than intended, and the exchange’s profits were so large that we failed to pay proper attention." When cryptocurrency media CoinDesk obtained Alameda Research’s balance sheet and raised concerns about its financial soundness on the 2nd, he did not anticipate that the controversy would spread to FTX as well.
On the possibility of criminal liability, he said, "I have a place to reflect on my present and past," and denied legal responsibility by stating, "I do not believe I am criminally liable." The U.S. Southern District of New York is investigating FTX’s use of customer investment funds without consent.
Meanwhile, this bankruptcy filing by FTX is expected to be the largest in industry history. The debt scale of FTX and its approximately 130 affiliates is estimated to be between $10 billion and $50 billion. Although FTX was found to hold $1.4 billion in cash, more than initially confirmed in the bankruptcy filing, the debts owed to the top 50 creditors alone amount to at least $3.1 billion, making it impossible to compensate all 1 million victims.
As liquidity issues surrounding FTX spread, former CEO Bankman-Fried resigned on the 12th, taking responsibility for poor management. John J. Ray III, who succeeded him as CEO, has decided to proceed with the bankruptcy process for the approximately 130 companies related to the FTX group.
Former CEO Bankman-Fried said, "I poured almost all the assets I had into FTX," adding, "Currently, I have only $100,000 and one usable credit card left."
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