“I Don’t Know For Sure”: SBF Says When Asked if He Really Received $4B Funding After Bankruptcy Filing
Sam Bankman-Fried, founder and former CEO of FTX, has backed off his claims about potential investment offers in the cryptocurrency exchange that came right after he filed for bankruptcy.
SBF, who appeared on the Crypto Point Hindi podcast on Saturday, was flooded with questions about how FTX, once the third-largest cryptocurrency exchange in the world, failed – and the events that led to the fall down.
At one point, Stephen Findeisen, a popular internet detective better known as Coffeezilla, asked if he really received a $4 billion funding offer right after he filed for bankruptcy. “You said you had $4 billion dollars that came in. Does that still exist? Was that ever real?” Findeisen said.
“I don’t know for sure,” SBF replied. “I hope that the relevant teams are doing whatever they can to maximize value for customers here.”
In an apology letter to employees shared by CNBC, SBF said they received “potential interest in billions of dollars of funding” just eight minutes after he signed the Chapter 11 bankruptcy document.
“Between those funds, the billions of dollars of collateral the company still held, and the interest we’d received from other parties, I think that we probably could have returned large value to customers and saved the business,” he added.
It is also worth noting that SBF claimed FTX US, the US arm of FTX, is completely solvent and can pay client funds as soon as tomorrow.
“I can’t make promises on behalf of the company, I can’t speak on behalf of the company, and I don’t know what decisions everyone’s going to make. I do know that FTX US, to my knowledge is totally solvent and could, I think, return everyone’s money tomorrow if it wanted to.”
Speculations around the health of FTX and Alameda increased in early November after reports revealed that the investment firm’s balance sheet is loaded with FTT tokens, the native token of FTX.
By the end of that week, FTX announced that it had filed for Chapter 11 bankruptcy in Delaware. Notably, FTX US was also included in the proceedings, despite claims by the former CEO that their US exchange was fine.
There has been a lot of outrage against SBF by crypto community members, with many claiming that he committed fraud and scam and should be put to jail.
In a recent Op-Ed, CoinDesk’s Chief Insights Columnist David Z. Morris called SBD “a con man and fraudster of historic proportions.” He noted a number of his crimes and claimed traditional media outlets are not being biased and not reporting the reality.
As reported, five Bloomberg journalists were presented with a story about all the mess at FTX back in July, but they denied it saying “it was bad for business.”
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