By
Chimamanda U. Martha
April 19th, 2024
FTX has more than a million estimated creditors according to the bankruptcy files. The losses suffered by the company are between a range of $10 to $50 billion.
FTX’s founder Sam Bankman-Fried, who has recently been at the receiving end of massive scrutiny from crypto participants, has stated his plans to start a new business to earn sufficient capital to pay back victims of the FTX downfall.
He explained how the company’s collapse was a result of inefficient management skills and not of any con activity. In an interview with the BBC, Bankman-Fried vowed to make everything right by refurbishing investors’ losses that were a result of the exchange’s breakdown. The ex-CEO also claimed to come up with a new venture that would potentially offer him the required funds.
SBF was also quoted saying that he would do anything to be able to make it up to the investors who have lost a significant amount of money. In addition to that, he also said that he wants to give back to society and is working on coming up with a proposal that does exactly that.
FTX has more than a million estimated creditors according to the bankruptcy files. The losses suffered by the company are between a range of $10 to $50 billion. The CEO recently engaged in a media apology tour to redeem his image a month after the massive breakdown of FTX, which unveiled the inappropriate use of customer and investor funds.
On November 30, SBF made his first public appearance after the collapse and answered several questions at the DealBook Summit in New York.
However, the thirty-year-old entrepreneur claims to not have committed any fraud.
Nevertheless, the FTX founder has now formally been added as a witness for the December 13 hearing with the House Committee on Financial Services. The other witnesses, who have already been added for the hearing include John Ray, the present Chief Executive Officer of FTX.
Sam also rejected all the conjectures about FTX’s sister company Alameda Research wrongly using customer capital and that he and additional officers allowed the facile cash flow between the enterprises.
Moreover, SBF confided with the public as he talked about his possible arrest and prison sentence. He said that he doesn’t like thinking about it and focussing on coming up with solutions that could make the situation better.
The downfall of one of the most popular exchanges has led to a negative environment for people working in the crypto space. The company suffered a liquidity crisis in November and wasn’t able to concede to its customer’s withdrawal requests.
Several officers and distinguished entities requested SBF to show more light on the calamity and accept more responsibility.