The former FTX CEO explained why the exchange only reopened withdrawals for the citizens of the Bahamas.
Sam Bankman-Fried, the former CEO of FTX, gave an account of what happened in the days before the exchange filed for bankruptcy.
In a telephone interview with crypto blogger Tiffany Fong, which dated Nov. 16, Bankman-Fried claims to have made the decision to reopen withdrawals to Bahamian citizens because he did not want himself, nor the exchange, to be in a country with a lot of angry people in it because that’s where I am right now, and you don’t want your company to be incorporated in a country with a lot of angry people in it,” he said.
Bankman-Fried said he gave the regulators a heads up that FTX was going to do it, but that they didn’t reply before he decided to allow withdrawals.
It is shitty, but it was realistic. The pathway for FTX did not involve Bahamians being angry.
Originally, the now-defunct crypto exchange halted all withdrawals on Nov. 8, as a result of liquidity problems.
On Nov. 10, the exchange announced that it had begun to facilitate withdrawals of Bahamian funds, just a day before it filed for bankruptcy.
at the time, it claimed to be in compliance with the demands of the country’s regulators, resulting in millions of dollars in funds extracted from the exchange.
FTX’s story was jeopardized by the Securities Commission of The Bahamas (SCB), which stated on Nov.12, that it had neither instructed nor authorized FTX to prioritize withdrawals of Bahamian clients, and that it had neither instructed nor authorized it.
As part of the firm’s liquidation proceedings, any withdrawal of funds could be clawed back.
The SCB was confirmed if it had received communication from FTX prior to the exchange reopening. The SCB didn’t reply immediately.
In his latest meeting with Fong, Bankman-Fried denied the move was to facilitate withdrawals by individuals within FTX after Fong proposed that this is the way things were being seen.
“Gracious it wasn’t insider withdrawals, this was attempting to make an regulatory pathway forward for the exchange.”
SBF was hot on the FTX hacker’s trail
The former FTX CEO mentioned it.
He was close to finding out the identity of the FTX hacker, who is believed to have stolen over $450 million worth of assets soon after the exchange filed for bankruptcy.
11.I don’t know who shut off access to the systems when I was halfway through it.
I narrowed it down to eight people. I don’t know which one it was nevertheless I have a really respectable sense.
In a separate interview with Sam Bankman-Fried by Axios on Nov.
The former FTX CEO has revealed that he has only a few hundred thousand dollars left in his bank account today.
This is despite Bankman-Fried was worth $26 billion at his peak.
Bankman-Fried claims that he had “basically everything” tied up in the bankrupt company.
I have no idea.
I don’t know.
I had $100,000 in my financial balance if I’m not mistaken, he said.
CryptoNewsOrg– BINANCE – GET UP TO $700* ON SIGN UP
1) $100 Spot Trading Bonus*
2) 20% Trading Fee Discount For Life*
3) Plus $500 Unlockables*
Sign-Up Links: Binance Global
For more details visit the Binance Bonus Offer Page
*Terms & Conditions Apply
More Stories
Euler Finance To Enter Talks With Exploiter Over The Return Of Assets
Mastercard To Settle Transactions For Stablecoin Wallet In APAC
Switzerland Planning Crisis Measures For UBS’ Takeover Of Credit Suisse: Report