What Sam Bankman-Fried Deliberate to Inform Congress About FTX’s Collapse

Disgraced FTX founder Sam Bankman-Fried (SBF) was scheduled to testify earlier than the Home Monetary Companies Committee on Tuesday in regards to the implications of his change.

His arrest by Bahamian regulators ruined these plans, however launched a draft of ready remarks. Highlights embrace:

• Round draft As supplied by Forbes, Bankman-Fried claims to have been ghosted by FTX’s new court-appointed CEO, John Ray. He believes Ray and the opposite regulation corporations managing the chapter (Sullivan and Cromwell) are attempting to extort as a lot of the payment out of the method as doable.
• Bankman-Freed’s response earlier claims Ryne Miller, FTX US common counsel and former accomplice of Sullivan and Cromwell, pressured him to file for chapter, though FTX US was “totally solvent.”
• “I’ve 19 pages of screenshots of Sullivan & Cromwell, Mr. Miller, and others who I consider have been influenced by them, all despatched over the course of two days, and I want to apply for Chapter 11 ASAP. I used to be pressured to take action,” wrote the SBF. “They vary from cussed to mentally unbalanced.”
• The change’s founder has additionally accused John Ray and the U.S. chapter courtroom of some type of racism towards the Bahamian regulator, which he believes has been unfairly criticized. Their assumption that different races, cultures, and segments of presidency are malicious and incompetent could be seen as extremely offensive when directed at America’s minorities,” he stated.
• FTX didn’t have a threat administration workforce. “FTX Worldwide had groups devoted to finance and lots of different areas of the enterprise, however none devoted to threat administration or monitoring person positions.
• he additionally doubled Declare Binance has coordinated lots of FTX’s points, together with a month-long detrimental publicity marketing campaign towards the corporate.
• Bankman-Fried has cleaned up stories of hardcore partying and drug use within the Bahamas. In actual fact, he had by no means been drunk earlier than and had been on antidepressants for the final ten years. “I used to be unhappy, and most of his life as an grownup,” he stated.