‘I Didn’t Clutch Funds’: Bankman-Fried Debuts Newsletter—And Defense
Topline
Sam Bankman-Fried, the frail billionaire going through a litany of felony charges for alleged fraud in his now-bankrupt alternate FTX and the now-defunct trading firm Alameda Be taught, made his first public feedback of 2023 on Thursday, launching a Substack to it sounds as if sketch out his ethical protection.
Sam Bankman-Fried arrives at New york federal court finest month sooner than his now not responsible plea.
Key Facts
The 2,300-observe post outlines the “pre-mortem” sigh of FTX from Bankman-Fried’s level of view, providing a high level concept of the supposed funds of the Bahamas-headquartered FTX International quickly earlier than the firm filed for financial raze in November and Bankman-Fried resigned as FTX’s chief executive.
Amongst his claims were that a broader market downturn by hook or by crook led to FTX’s crumple and that he had microscopic to variety with Alameda’s operations, the latter of which has been disputed by the crew overseeing FTX’s financial raze lawsuits and by Alameda’s frail CEO Caroline Ellison.
“I didn’t steal funds, and I surely didn’t stash billions away,” Bankman-Fried wrote, in an instant opposing the responsible pleas from Ellison and FTX cofounder Gary Wang.
Bankman-Fried moreover repeated uncertain assertions that FTX’s U.S. operations were totally solvent and stay so, despite the industrial raze declaration, and that Binance CEO Changpeng Zhao is primarily to blame for Alameda’s insolvency.
Key Background
The blog post and connected social media recount ticket Bankman-Fried’s first public commentary exterior of court since December 30. Arrested by Bahamian authorities in December and extradited to the U.S., Bankman-Fried faces eight felony charges for allegedly funneling FTX customer funds to Alameda and for non-public expenditures, including millions in political donations. The 30-300 and sixty five days-feeble California native pleaded now not responsible to all counts in New York federal court finest week. Attorneys representing FTX talked about in court Wednesday the firm has recovered bigger than $5 billion in liquid resources so a long way in its financial raze route of. Bankman-Fried claimed Thursday that “nearly all of my resources were and serene are utilizable to backstop FTX customers.”
Chief Critic
On the general candid on social media and in interviews, Bankman-Fried wishes to “shut up,” Ira Sorkin, a lawyer who represented fellow notorious white collar felony Bernie Madoff, talked about finest month. “The most fundamental these that are going to listen to to what or now not it is a long way well-known to suppose are regulators and prosecutors.”
Tangent
Bankman-Fried’s Substack on the origin incorporated an probability to donate to him, Wall Avenue Journal reporter Caitlin Ostroff tweeted, prompting Bankman-Fried to reply: “Heh whoops that used to be accidental, valid gain—think there need to not be a paying probability anymore…”
Extra Discovering out
Bankrupt FTX Has Recouped Over $5 Billion In Liquid Sources—But Restful Has Billions Extra To Walk To Meet Liabilities (Forbes)
Sam Bankman-Fried Pleads Not Guilty (Forbes)