The FTX Debacle: Sam Bankman-Fried’s Unfiltered Thoughts

In a surprising turn of events, Sam Bankman-Fried, the former CEO of FTX, took to his Substack on January 12, 2023, to pen what he called a “pre-mortem overview” of FTX’s dramatic collapse. Unfortunately for him, the response from the crypto community was about as warm as a polar bear in Alaska.

SBF’s Stubborn Denials

In his lengthy exposition, SBF steadfastly denied any allegations thrust upon him. He claimed that FTX US had been entirely solvent when filing for Chapter 11 bankruptcy, with a reported $350 million in cash. To add a cherry on top of the absurd sundae, he insisted that FTX International was sitting pretty with about $8 billion worth of assets at the time John Ray took the wheel. SBF decried that “no funds were stolen” but rather that Alameda, his trading firm, took a hit due to a market crash it was seemingly unprepared for. This is almost like insisting that potholes on a road are actually nature’s way of keeping drivers on their toes.

Legal Experts Weigh In

To gain insights on SBF’s theatrical unveiling, Cointelegraph consulted Richard Cannon, a white-collar criminal attorney who pointed out the obvious: Bankman-Fried likely didn’t have his legal team’s stamp of approval on that Substack confessional. He quipped, “I don’t think this would have been done with the approval of his lawyers. Better get it right because everything he says can be used against him in his criminal trial.” Nothing like a bit of legal jeopardy to spice up a Monday morning!

The Skeptical Chorus of Crypto Voices

The crypto community wasn’t buying what SBF was selling. Wall Street Silver chimed in, pointing out that SBF conveniently omitted references to the billions he allegedly borrowed from customer funds to support his extravagant lifestyle. “I am shocked his legal team has not stopped this guy from talking,” they lamented, perfectly encapsulating the sheer confusion many felt.

Peruvian Bull added fuel to the fire, stating, “SBF is sitting in his parent’s mansion writing Substack articles blaming everyone but himself for the FTX fraud.” Some might be inclined to say a little self-reflection would do him wonders. Meanwhile, appellate attorney Michael Tex Duncan used his Twitter platform to suggest that SBF’s move from tweet confessions to long-form letters was merely a smokescreen, teasing that FBI agents must be regretting their newfound Substack subscriptions.

The Family Affair

As the drama unfolds, it appears the family tree might bear some intriguing fruit. Cointelegraph recently reported that Joseph Bankman, SBF’s father, has sought legal counsel amid his son’s promisingly complex criminal proceedings. Whether he indeed faces any criminal repercussions tied to FTX remains up for debate. But if there’s one thing we know, it’s that in the land of crypto, every family has its quirks.