FTX affair: return to the interviews of Sam Bankman-Fried

CEX, lies and video – Since early November and the outbreak of theFTX dealthe former CEO of the company continues to spread on social networks and in the American press. Sam Bankman-Fried freely delivers his share of truth to the media which sometimes rolls out the red carpet for him for more or less complacent interviews, but always successful. These interventions irritate the crypto community which would like justice to pass and which does not digest the sometimes lunar speeches of the former darling of Wall Street.

Despite rather specific and sometimes direct questions from journalists, large gray areas persist on what he knew and on his role in the affair. He persists in saying that he was wrong and that he regrets the situation in very American contrition sessions, but does not recognize any criminal acts. Lately, two interviews have caught the public’s attention, here are the best passages if you weren’t there.

In Free Fall on the networks

In some high-profile scandals, lawyers advise their client to be discreet and to limit speaking to avoid aggravating the situation. Clearly, Sam Bankman-Fried hasn’t listened to this advice, as he keeps tweeting and answer interviews for the written press, television and even the Internet.

At first, he was content to publish messages on these social networks, but the content of the publications greatly confused observers who wondered where he wanted to go. And, things are not arranged when he began to speak frankly through articles of the American official press.

When SBF benefits from the leniency of the media

The Wall Street Journal where the New York Times then devoted long-format articles to him with an angle that did not fail to destabilize the users of the bankrupt platform. The founder of FTX was reportedly a victim of his platform’s collapse and the loss of his fortune worries journalists more than the army of poor people who lost their life savings.

Then all the mainstream media will deal with the news of the fall of the exchange without ever really questioning its ex-CEO, preferring to emphasize the sensational side of the news and recall the intrinsic danger of cryptocurrencies. This angle of dealing with the FTX case will spread in the media for several days, which triggers the ire of the crypto community.

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The former CEO faced with the contradictions of the FTX affair

Face to face with the press

It will finally be necessary to wait for the last days of November to have two interviews in quick succession with pugnacious journalists who will try to make the young CEO react. The first takes place within the framework of the DealBook Supremet organized by the New York Times and will be conducted by Andrew Ross Sorkin. The second will take place the next day in the show with a large audience Good Morning America and SBF will be queried by George Stephanopoulos.

These two events will be announced with great fanfare and other teasersbecause Americans love this genre “ truth interviews “. From the Bahamas where he still lives, Sam Bankman-Fried will engage each time in a high-level balancing act which will consist of multiplying the public apology and regrets while maintaining its positions on the substance of things.

Le Margin Call d’Alameda Research

Throughout these two interviews and despite the repeated questions by the journalists, Sam Bankman-Fried will say and repeat that nothing illegal was done and that in the worst case, he didn’t know. No, user funds were not used to replenish Alameda’s coffers or anything else for that matter.

Oui, Alameda had positions with a lot of leverage, but he was not in control and knew nothing. No, the funds of the two companies have not been commingled and there has been no misuse of client funds. These two companies would still be operating if there hadn’t been all these rumors triggered by our colleague CoinDesk’s article.

Logo of Alameda Research, sister company of FTX

Press revelations and the day after

A day in hell for users

The November 2nd, the specialized crypto media releases the famous article on Alameda’s reserves in FTT and at the same time calls into question the solvency of the two sister companies. Asked about this episode, SBF admits to having been nervous and feverish at that time. However, he will remain convinced until the end that there is no real problem with the situation.

It is rather the user fault who rushed to withdrawals and blocked everything. Without it, FTX.us would still work and everything would be fine in the best of all possible worlds. This is essentially what emerges from the SBF interview on these fateful few days. Besides, and hang on tight, if we allowed withdrawals today on FTX.us, it would be possible for everyone to get their funds back. A bit like with FTX Japan.

Scams, crimes and…rhetoric

To all questions concerning possible embezzlement or criminal acts, he will answer with the same lack of assurance and with awkward silences. I am responsible, he repeats at will, I should have checked the accounts, I should have trusted my teams less. It’s my responsibility, but I could never have imagined such a scenario.

George Stephanopoulos will make him repeat several times that he had not taken the time nor made the effort to manage the risks of his business, which is the main role of a leader. Yes, he was wrong, because he was the CEO and it was up to him to be vigilant about all that. Where did the money come from? Alameda Loans ? business profits. Where did the political party support fund ? Commercial benefits as well.

Presumed innocent by justice and guilty by everyone

Un simple Usual Suspect(s)

On several occasions, the two journalists will ask him if he lied in these declarations. Did he lie when the November 7th, he declares that the funds are safe and that all is well? No. Was he lying when he said he didn’t know customer funds were being used by Alameda? No. On the other hand, he sometimes preferred to act as a representative of FTX, and therefore present the facts in an angle favorable to his company.

Et his parents’ house? What about the company executives’ luxury apartments in the Bahamas? “I didn’t know, for me these people from Silicon Valley all had enough money to buy all that! And for his parents, he didn’t know, but that’s not important. What matters now is to make things right, to help justice and to offer help whenever it will be useful.

Friendly Pirates of the Caribbean

Many questions about his lifestyle in the Bahamas were also asked during these interviews, but the answers were rather evasive. Did he live with the employees of Alameda? Yes, no, but maybe once in a while. What about those booze and drug parties we talked about? None of this is true, he doesn’t do drugs or drink alcohol and has never seen anything illegal this whole time. And the drugs? He is not interested in the privacy of his collaborators and therefore cannot answer this question.

Is he afraid of going to jail? No, not really and anyway that’s not the important thing. What matters are the customers of FTX, for its fate, we will see later. Does he plan to return to the United States? Why not, to his knowledge, he could very well do it. Does he still have money to live on? Unfortunately, he had put all his savings into his own business and he only has $100,000 left in a bank account.

The ties between the Bahamian authorities and FTX are still murky.
What are FTX’s ties to the Bahamian authorities?

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An American show for not many answers

Figures from the shadows

So many questions asked that will remain unanswered and so many gray areas that the public would like to fill. What was the role of Caroline Elisson and why is no one talking about it? Why does he persist in hiding behind the law when FTX’s legal notices clearly state that user funds do not belong to the platform? What happened in the days following the bankruptcy with his stolen or embezzled funds?

What are the links that unite Sam Bankman-Fried and certain politicians, finance or media? What role(s) did they play in his rise and in the media-judicial treatment of his fall?

Doctor Bankman and Mister Fried

Finally, what stands out the most from these interviews are perfectly staged apology in a pure American style that the media across the Atlantic love. He will repeat many times that he should have, that he would have had to, that he would have wanted to control, verify, make other decisions, in short, run his business.

These two interviews achieved very good audience ratings and inevitably ended with thunderous applause for those who decided to speak. Thank you for coming, we heard, thank you for daring to speak at such a difficult time for you. Thank you for defying the prohibition of your lawyers to come and give your truth and thank you again for everything. Yes, really, thank you for everything.

This staging of the confession by the American media has clearly disgusted the users of the platform, some of whom have lost everything and who must in addition support the laborious declarations of the one who ruined their lives. In this regard, Andrew Ross Sorkin began his interview in New York by reading the letter from a certain Andrew who lost no less than 2 million dollars in the case. Andrew wanted to know why Mr. Bankman-Fried decided to steal his life savings? Why did he do that ? And, it’s not just Andrew who wants to know, everyone wants to know. Unfortunately, when it came time to answer for his actions, young Sam has a fading memory.

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