CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

FTX fallout: SBF “regrets bankruptcy” and says he “f**ked up. Big. Multiple times”

By Capital.com News

11:08, 17 November 2022

Sam Bankman-Fried
SBF during the House Financial Services Committee on digital assets, December 8, 2021. – Photo: Getty Images

FTX founder Sam Bankman-Fried says he regrets filing his crypto empire for bankruptcy – just four days after starting the proceedings.

The comments by the 30-year-old former poster boy of the crypto world came in a bizarre Twitter exchange with a VOX reporter, later published by the website.

The cryptocurrency exchange platform FTX and its sister firm Alameda Research started Chapter 11 proceedings last Friday after FTX couldn’t keep up with client exodus. Bankman-Fried also stepped down as FTX CEO at the time. 

But Bankman-Fried – known by crypto followers as ‘SBF’ – now says that if he had kept trying to fundraise instead, “withdrawals would be opening up in a month with customers fully whole”.

“You know what was maybe my biggest single fuck up?” the entrepreneur asked Vox reporter, Kelsey Piper. “Chapter 11,” he wrote and claimed that had FTX/Alameda not declared bankruptcy “everything would be 70% fixed right now.”

What is your sentiment on BTC/USD?

67660.40
Bullish
or
Bearish
Vote to see Traders sentiment!

FTX token (FTT) to US dollar

FTX CEO: SBF does not speak on FTX/Alameda’s behalf

But new FTX chief executive John Ray quickly sought to distance the company from Bankman-Fried’s comments, in which the FTX founder, currently under investigation by both the Securities and Exchange Commission (SEC) and the Department of Justice, also wrote “Fuck regulators”. FTX also dismissed his previous statements about crypto needing more regulation as just “PR”. 

Ray, a bankruptcy lawyer who oversaw the recovery of billions of dollars from defunct energy trading firm Enron, who was appointed to over as CEO at FTX last Friday, said in a statement: “Mr Bankman-Fried has no ongoing role at FTX, FTX US, or Alameda Research Ltd. and does not speak on their behalf.”

‘Complete failure of corporate controls’

SBF maintained during the interview that FTX never transferred their client deposits to Alameda. When pressed as to whether the firm was lending out customer funds, he said: “It wasn’t quite lending them out – it was messier and more organic than that; each step was in isolation rational and reasonable, and then when I finally added it all up last week, it wasn’t”.

DOGE/USD

0.14 Price
+7.850% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.60 Price
+3.710% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

SOL/USD

175.25 Price
+2.780% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

BTC/USD

67,660.40 Price
+0.870% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

“Oh FTX doesn’t have a bank account, I guess people can wire to Alameda’s to get money on FTX. .... three years later .....oh f**k, it looks like people wired $8bn to Alameda and, oh god about that stub account that corresponded to that and so it was never delivered to FTX.”

“I fucked up. Big. Multiple times,” admitted SBF.

After VOX published SBF's conversation with Piper, the FTX founder said it was not meant to be public: “Last night I talked to a friend of mine. They published my messages. Those were not intended to be public, but I guess they are now,” SBF wrote in a tweet. 

SBF's philanthropic family foundation donated money to Vox for a 2023 reporting project. VOX said the project is now on pause.

FTX’s new CEO Ray wrote in the bankruptcy filing of “unprecedented” poor management practices by his predecessor. “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” he said.

 

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading