Sam Bankman-Fried (SBF) claimed that he also doesn’t know exactly what happened with the user’s fund and he can only guess.
Sam Bankman-Fried (SBF) is the founder of the FTX crypto exchange and former CEO of FTX. After filing for bankruptcy, he left his role from the company on 12 November. Recently he appeared in an interview at DealBook Summit in New York City, where he said that he made mistakes but the collapse of FTX was not intentional. Indeed, FTX filed for bankruptcy with more than 100 of the affiliated companies. And also few other companies, which were linked with FTX under a service use program, are struggling.
On 3 December, Wall Street Journal (WSJ) published a report on behalf of an interview of SBF regarding the FTX exchange bankruptcy.
SBF was questioned about what happened with the user’s funds which were transferred from the FTX crypto exchange to Alameda Research.
SBF said that he doesn’t know about it exactly and he can only speculate as per his knowledge & situations.
“One phrasing of it…would be to say that Alameda effectively sent those dollars from its FTX account to the user, but that’s a ledger transfer of course,” SBF said.
FTX founder also explained that in the initial phase FTX was only supporting crypto assets deposits and crypto assets fund credit on FTX was possible with the fiat deposit on the Bank account of Alameda Research and in this way more than half of the position of Alameda Research was with FTX user’s funds.
“So some of them would wire money to Alameda and then ask to be credited on their FTX account,” FTX’s former CEO said. He estimates more than half of Alameda’s total position came through these wired customer funds to its bank accounts.”
According to SBF, the amount of this fund will be nearly $5 Billion. He also admitted that he was 90% owner of Alameda Research but he was not close with the company because he was much busy at the FTX exchange & he was not willing to do those works which were not in his interest.