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Highlights
- Sam Bankman Fried claims FTX collapsed due to poor risk management rather than fraud.
- In the New York Sun interview, he revealed that he had distanced himself from Democrats and compared his struggles to Donald Trump's.
- Despite his efforts to reshape people's narrative, his return to crypto remains uncertain.
Sam Bankman Fried and the FTX crash are among the most discussed market topics due to the impact they left on millions of crypto investors. Bankmsn rose from nothing to a multi-billionaire and founder of the biggest cryptocurrency exchange but lost this stardom after gaining 25 years of imprisonment due to his role in the FTX collapse. However, with a life behind bars, he is changing his political allegiances from Biden to Trump and possibly anticipating a presidential pardon. Will he make a comeback soon? Let’s discuss.
Sam Bankman-Fried Reveals FTX Never Went Bankrupt
Sam Bankman Fried, the founder and former CEO of the FTX exchange, is serving a sentence after a jury found him guilty of defrauding FTX customers in November 2023. His involvement in the FTX crash, including taking FTX customer deposits and misusing them for venture capitalists, luxury real estate, and even political donations, led to him receiving 25 years imprisonment on March 28, 2024. He is currently behind bars and is appealing his conviction.
In a phone interview with the New York Sun, Bankman-Fried, from Brooklyn’s Metropolitan Detention Center, discussed many matters, trying to express his perspective for the first time since his imprisonment. During the interview, he did not shy away from talking about the FTX crash and accepted the mistakes made.
However, Sam Bankman Fried denied intentional wrongdoings and claimed that the FTX failed due to poor risk management rather than fraudulent activities. He also claimed that the law firm Sullivan & Cromwell mishandled the bankruptcy, as they announced that the company had only $ 1 billion but later found out, it had $15 billion.
Interestingly, the most surprising claim is that the exchange had enough assets to pay everyone back in November 2022. However, he claims the debtors stepped in, delaying the process. This statement comes as FTX Estate begins distributing $11 billion to creditors and past customers under its Chapter 11 Plan of Reorganization.
There were enough assets to pay everyone back in full in November 2022. If these debtors hadn’t stepped in, customers wouldn’t have waited two and a half years to get their money.
Why did Bankman’s Political Stance Shift to Donald Trump?
In a conversation with the New York Sun, Sam Bankman-Fried criticized the Biden government and endorsed Donald Trump. Although the interview was intended to bring a separate narrative on the FTX’s collapse, it also revealed his political perspective. By making serious remarks about Biden’s government, Bankman confirmed his shift to Trump.
In 2022, Bankman-Fried was among the biggest donors for Democrats. However, since the collapse, he has now distanced himself from the party, revealing his frustration with their approach to the crypto regulations.
More importantly, he suggested that the prosecution was politically motivated, which aligns with his increasing collaboration with Republicans.
It was starting to come out that I’d been working with Republicans a lot more than had been previously thought.
Now, with Donald Trump pardoning Silk Road founder, Bankman’s parents are lobbying for him as well. Bankman has also compared his battles to Donald Trump’s, claiming that the judicial system oversaw his and Trump’s civil defamation case.
Critics claim that the SBF’s victimization at the handle of the politicized Justice Department and his comparison to Trump’s struggles is about gaining Trump’s favor.
I know President Trump had a lot of frustrations with Judge Kaplan,” Bankman-Fried said. I certainly did as well.
For a long time, Bankman has tried to defend himself, but the seriousness of the matter and his involvement in the FTX crash could not be ignored. As a result, his return to the crypto space is uncertain. More importantly, public trust in him remains fractured, with many investors blaming him for their losses.
Can Sam Bankman Fried Make A Comeback Soon?
Although Sam Bankman-Fried has tried to defend himself on multiple occasions, including the recent New York Sun interview, he still faces serious legal consequences. With the ongoing lawsuits and the regulatory scrutiny, his possibility of returning is hard to conclude. Although his parents seek Donald Trump’s pardon, the uncertainty still stands.
Most believe his reputation is beyond repair. However, some industry insiders believe he could return with a new role like a consultant or fiend-the-scenes strategies.
Frequently Asked Questions (FAQs)
1. Why did Sam Bankman Fried receive 25 years in prison?
2. What's Sam Bankman's perspective around the FTX crash?
3. Can Sam Bankman make a comeback in crypto?
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