FTX Declared Bankruptcy Because Of SBF's Unfortunate Statement
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Former FTX CEO Sam Bankman-Fried revealed a series of messages to Vox earlier today, which he addressed a variety of topics including regulators, ethics, and bankruptcy. FTX, which was one of the world's most prominent crypto exchanges before it went bankrupt, ignited a firestorm of public discourse in tech.
We pretend that perception equals reality, but it doesn't,” SBF said in a Twitter exchange with reporter Kelsey Piper. SBF despises regulators, saying that they “make everything worse” and that “they don’t care about customers at all.” In the published screenshots, he indicated that regulators “make everything worse” and “don’t protect customers at all.”
Although SBF’s former corporation will soon be in front of Congress, his tone and approach are significant. Chew’s assessment is that regulators’ methods of control are too simplistic—‘do more business’ or ‘do less business’ and ‘build more moats’ or ‘build fewer moats’—which he believes does not distinguish ‘between good and bad’—in other words, he doesn’t think regulators understand the complexity of their job.
Because SBF was a well-known figure in the ‘effective altruism’ movement, which focuses on the most efficient ways to help others, it was not surprising when the Vox interview spent a lot of time on ethics and philanthropy. SBF has also been a prominent political donor for some time, keeping him in the spotlight.
Although he wrote that he 'didn't want to do sketchy stuff, as there are huge negative consequences from it', he subsequently indicated that he didn't mean to. SBF stepped down as the chief executive of FTX last week, while Enron wind-down veteran John J. Ray III was appointed as FTX's new CEO.
In response to SBF's public statements, although we're not exactly sure which ones, Ray declared that SBF has no active role at FTX and does not speak on their behalf. CZ, the CEO of Binance, the largest cryptocurrency exchange in the world, was raised in the interview with Vox.
SBF's and CZ's distinct approaches to business were the talk of the world after the FTX debacle, and their Twitter feud continued long after the incident. One month ago, CZ was a living testament to ‘don’t commit unethical deeds or your funds will be worthless,’” SBF wrote, ‘now he’s a hero.’
He then asked if CZ’s change in perspective was ‘due to his being virtuous, or his larger balance sheet,’ which led to his victory rather than SBF’s defeat. CZ’s commented on FTX’s native token FTT as a precipitating event in the demise of the former exchange has been interpreted by some as a cause; we can only speculate as to its cause at this point, so take grains of salt.
Bankman-Fried tells Vox that his ‘biggest blunder was the thing everybody told me to do: file for Chapter 11 bankruptcy.’ He believes that if he hadn’t filed for bankruptcy, ‘withdrawals would be accessible in a month with all people completely satisfied.’ He states, ‘Instead, I filed, and the people in charge of it want to incinerate everything in humiliation.’
The transaction took place on June 25, 2019. SBF is the CEO of Vox to SBF. SBF is not certain whether he should have kept trying to raise the $8 billion lifeline. He adds that he might get there with a lot more damage. Damage is correct, and the negative effects are still being felt by individuals and businesses that had assets on FTX Future Fund (pre-bankruptcy).
Individuals and businesses that had assets on FTX Future Fund suffered as a result of the fallout from MIT Media Lab's cancellation of its fellowship, which was previously sponsored by FTX Future Fund. It's unfortunate, but FTX Future Fund is still talking to us.