Former CEO Sam Bankman-Fried (SBF) denied any wrongdoing in his first interview after the collapse of the FTX cryptocurrency exchange.
In an interview with YouTuber Tiffany Fong broadcast on November 29, SBF said, contrary to popular assertions, that he did not have backdoor access to FTX, where he reportedly controlled accounts.
Simultaneously, SBF said he had failed in his treatment of Alameda’s balance sheet, adding that the predicament was a result of “poorly classified accounting”.
“I had no intention of constructing a backdoor into this system. I hardly understood how to operate the system, but I was familiar with its user interface. I was inaccurate about Alameda’s FTX balances by a very substantial figure and an embarrassingly enormous new one, and it was due to a badly labelled accounting item, he said.
Intriguingly, SBF said that the FTX collapse was not due to the stated liquidity shortage, but rather to what he described as a “huge correlation of items during free market swings.”
“Liquidity did not create the market meltdown. “I misjudged the tremendous correlation of items during a free market move, particularly when they’re triggered by peer over the position itself and the massive amount of those movements, which caused the collapse,” he continued.
Bankman-Fried asserted that his attorneys opposed his accepting full responsibility for the failure. During the interview, he said that attorneys disapproved of the strategy of making postings public. It is worth mentioning that following the collapse, SBF often updated clients on Twitter about the situation’s development.
Notably, after the fall of FTX, authorities have called for consumer protection, and Sam Bankman-Fried faces a mountain of legal issues.
According to Finbold, the creator and promoters of FTX have been sued in an $11 billion class action. According to the case filed in a Florida court, FTX is accused of breaching crypto accounts affiliated with the exchange that pay interest.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.