Founder of FTX vents: “I’m broke and I’m one of the most hated people in the world”

Sam Bankman-Fried (SBF), founder of the now defunct cryptocurrency exchange FTX, gave a 15,000-word self-assessment while under house arrest: “I’m broke, I wear an ankle bracelet and I’m one of the most hated people in the world.”

According to documents obtained by The New York Times, the broker’s founder, once celebrated as a visionary of the cryptocurrency market, wrote the text on Twitter (now X) but never published it.

As he faced the storm building around him, SBF reflected somberly on his situation: “There will probably never be anything I can do to make the impact of my life positive.”. Still, he reiterated his belief in his actions, adding: “And the truth is, I did what I thought was right.”

Source: REUTERS/Dante Carrer

Leaked documents

During his house arrest, SBF, in an attempt to clear his name, shared revealing documents with Tiffany Fonga well-known cryptocurrency influencer.

Fong in turn turned over the documents to The New York Times, shedding light on FTX’s turbulent internal situation before its collapse.

After being accused of responsibility for the collapse of the FTX, SBF wrote hundreds of pages in attempts, sometimes incoherent, at self-justification. The texts range from memories of his youth to detailed mathematical calculations.

Among the previously unpublished documents, a draft of Twitter posts stands out, in which he openly criticizes some of his closest colleagues, mixing arguments with personal photos and links to music videos of famous artists such as Alicia Keys and Rihanna.

Sam Bankman-Fried in high school, photo found in a draft of an unpublished Twitter thread.  (Image: New York Times)
Sam Bankman-Fried in high school, photo found in a draft of an unpublished Twitter thread. (Image: New York Times)

Girlfriend’s fault

A repeatedly mentioned figure in the documents is Caroline Ellison, Bankman-Fried’s ex-girlfriend and once his right-hand man. SBF places much of the blame for FTX’s collapse on Ellison, claiming that his incompetence in managing Alameda and his hesitation in implementing vital strategies were crucial to the broker’s demise.

In addition to questioning his professional abilities, he hints at personal issues, including suggesting that the end of their relationship may have affected the fate of the company.

Another key figure in the plot is Sam Trabucco, co-CEO of Alameda. The documents show that Trabucco and Ellison had ongoing disagreements.

Bankman-Fried recognizes Trabucco’s talent for risk management, but criticizes his dedication to the company, claiming he was more focused on personal adventures than on his business responsibilities.

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SBF-Caroline-Ellison-1668176050

Amid this welter of accusations and counter-accusations, three of Bankman-Fried’s top advisers pleaded guilty to fraud, with some agreeing to testify against him. However, the SBF itself remains steadfast in its defense and vehemently denies any wrongdoing.

FTX, then hailed as one of the world’s largest cryptocurrency brokers, suffered a devastating collapse last November, taking billions of customer dollars with it and creating an earthquake in the cryptocurrency industry.

Since then, SBF has lived under house arrest in his parents’ home, surrounded by friends, colleagues and journalists, as he tries to turn the narrative that has formed against him.

In its outburst, SBF also raised suspicions about the law firm Sullivan & Cromwell, which is overseeing FTX’s bankruptcy. He claims the firm constructed a derogatory narrative about his alleged financial misconduct.

At the epicenter of this controversy, Ellison remains a central figure. When she pleaded guilty, she alleged that she and SBF conspired to shore up Alameda’s finances with customer money. FTX’s CEO denied such allegations.

The story presented in the documents provides an intimate look at the complexities and tensions that surrounded FTX and Alameda. From problematic personal relationships to business disputes, the story unfolds as a drama of epic proportions.

The trial against Bankman-Fried starts on October 3. His actions and statements thus far suggest he will try to portray the situation as a mistake, not out of malice, but out of judgment.

He claims that he has never lied and that he firmly believes in the truth.

Source: Live Coins

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