January 27, 2023

“I’ve Had A Bad Month” – Bankman-Fried Claims “Didn’t Knowingly Commingle Funds”, Blames Girlfriend’s Fund & “Accounting Mistakes”

It appears Sam Bankman-Fried is using the ‘ Simple Jack’ defense… Bankman-Fried began the interview by saying he’ s deeply apologies about what happened. “ We didn’ t ever attempt to commit fraud on anybody, ”   Bankman-Fried (SBF) said. He claims he was shocked by what happened this month. “ I have limited access to data, ”   Bankman-Fried said about his attempt to reconstruct what […]#@@#@!!

It appears Mike Bankman-Fried is using the ‘ Simple Jack’ defense…

Bankman-Fried started the interview simply by saying he’s deeply i am sorry about what happened.

“ I didn’t ever attempt to commit fraud on anyone, ”   Bankman-Fried (SBF) said.

He claims he was stunned by what happened this 30 days.

“ I have restricted access to data, ”   Bankman-Fried said about his attempt to reconstruct what happened over the past month.

Which makes all of us wonder – if this individual didn’t have the data, who did?  

When pressed by Sorkin,   Bankman-Fried said “ We didn’t knowingly commingle funds”.

Which we take note is not a denial, and as NYT notes, on the commingling of funds, there appears to be  ample evidence suggests that Alameda and FTX shared an account at their own U. S. banking companion Silvergate.   Unsure how that could square with SBF’s claim that that didn’t occur, or wasn’t aware it was occurring.

Again and again,   SBF calls it an “ accounting mistake”   claiming that   there was a difference among FTX’s audited financials compared to FTX’s internal dashboards displaying Alameda’s positions.

SBF tries to range himself from the trading company, claiming he did not have the bandwidth to run two businesses (FTX and Alameda).

“ I wasn’t working Alameda, ”   he says.  

“ I was nervous because of the conflict of interest of being too included. ”

Clearly SBF is attempting to throw Caroline Ellison, the former CEO associated with Alameda under the bus because responsible for the downfall.

Asked whenever he knew there was a problem, he responded “ November 6th”,   which usually just happens to be the day that will Changpeng Zhao, also known as CZ, publicly tweeted he’d be liquidating Binance’s holdings associated with FTT.

When they looked at the data, they  realized “ there was a potential, serious problem generally there, ”   he says. Alameda’s position was huge on FTX, and it also had just taken an enormous hit.

Whenever asked by Sorkin when his lawyers support your pet speaking publicly about this, SBF says “ no they may be very much not. ”

“ I have a duty to talk and to explain what happened. ”

“ I’m looking to be helpful anywhere I can with any of the global entities, ”   he says.

SBF framed the whole debacle as a risikomanagement problem that got beyond control in what he calls a “ run on the bank, ” and that he was unacquainted with any actions taken by Alameda.

The former White-colored Knight notably squirmed uncomfortably when asked if he or she is concerned about criminal liability, stuttering the comment that “ there’s a time and a location for me to think about   myself and my own future.   I don’t think this is this. ”

“ I don’t personally think that I have” criminal liability.

Asked whether FTX’s non-profit endeavors were part of a PR campaign. Some were real, he said.  

But  “ you can find things I felt like all of us needed to do for the business. ”

With regard to his massive donations to Democrats and cozy relationships with regulators, he said he participated in these types of things, and  he wishes that this wasn’t how the world worked, blasting the ‘ greenwashing’ that many firms have to do.

“ I spent most likely thousands of hours in DC looking to get to the point where I could actually have meetings with some of the government bodies, ” Bankman-Fried said. He or she said it wasn’t an issue of donations or cash — it was a matter of repeatedly asking for meetings and submitting documents.

Sorkin asks SBF about the adderal use and group sleepovers. SBF reacts,   “ We messed up big. ”

“ Look, I screwed up, ”   adding that we “ completely failed” on risk management, and conflict of interest risk.  

On reports of drug make use of at FTX, SBF says  “ there were no wild parties. With our parties we enjoy board games. Twenty percent of people would have a quarter of a ale each and the rest of all of us would not drink anything. ”  

He says he has been prescribed various things to assist him concentrate. “ I think they help me focus a bit, ” he says.

Finally, when asked when he was truthful, SBF said:

“ I was as truthful as I am knowledgeable to be, ”   SBF said.  

“ I can’t say for sure of times when I lied. ”

Bankman-Fried ended the interview by admitting:

“ I obviously wish that I spent more time dwelling for the downsides and less time thinking about the upsides. ”

Perhaps the most memorable line of the whole thing had been this:   “ Look, I’ve a new bad month, ”   claiming that  he has just one working bank card left, and admitting “ I don; t understand what the future holds. ”

Sadly, we have a feeling justice will never be done here for the 1000s of FTX clients who have lost millions…

“ I can’t promise anyone anything, ”   he says.

*  *  *

As we  discussed last week , Mike Bankman-Fried has now demonstrated that he is both a pathological liar  and  a sociopath, the kind who in “ explaining” to his employees how he stole billions (over $4 billion according to new FTX CEO David J. Ray) from the now bankrupt FTX, an function which left it financially troubled and without liquidity, called it  “ loans” that have been “ generally” not utilized for “ large amounts of personal consumption”   (just “ small amounts” used for such trivial items as $40 million penthouses and personal jets).

And the just reason we don’t formally call him a felony just yet, is because he has not really yet confirmed he used client money from his exchange to fund his individual hedge fund, an react which would cost any other person decades in jail… but not prominent democrats like SBF or Jon Corzine, of course. Plus it’s the US lawful system’s job to do that, not really ours. Although we are developing increasingly skeptical this notable Democratic donor will watch the inside of a courtroom.

It’s not just us:   with much of the entire world demanding to know exactly how this corpulent 30-year-old nevertheless has not been thrown in prison,   or at least charged using a variety of crimes, the NYT has now confirmed to the entire world what a farce the one-time paper of record has become, and exactly how it is willing to whore alone out for clicks – let alone prominent Democrat donors – because following such luminaries as Janet Yellen, Lewis Fink, Mark Zuckerberg, plus Volodymyr Zelensky, none other than SBF will be speaking with Andrew Ross-Sorkin at the NYT Dealbook “ summit” this evening…

The shocked, stunned, and just disgusted reactions to this grifter’s appearance have continued…

While the FTX founder hasn’t gone completely silent since the collapse of his crypto empire,   this marks one of the first times he could speak in front of a reside audience.

And while we are certain that the NYT – which all of us assume is done  writing puff pieces  on behalf of SBF after this became a laughing stock last week – would be quick to mercilessly cancel plus expel from its “ prestigious” conference anyone who had misgendered some post-op transsexual, it is willing to give this thieving pathological liar and sociopath  a forum in which to profess his innocence to the entire world,   and by association with other Democrat “ celebrities” such as this one…

The  NYTimes points out that no questions will be off limits,   and topics might include the collapse of the firm, allegations of fraud plus mismanagement and how Mr. Bankman-Fried intends to pay back customers, investors and creditors. May Sorkin ask about the huge amounts of money given to Democrats?

Here’s several questions from Bloomberg’s Olga Kharif that we’d like answered:

  • Usually, when companies file for bankruptcy, their own executives don’t talk to the press, tweet or participate in summits. Why are you doing the opposite?   Why are you here?
  • Just how exactly did FTX discover itself with an $8 billion dollars shortfall?   Did FTX use customer funds inappropriately?   How, and when do that start?
  • The bank run on FTX started when  Binance  said it might dump its holdings associated with FTT — the FTX token you gave in order to Binance in 2021 in order to exited its equity expense in FTX. Why do you give Binance the particular FTT token back then? Weren’t you worried that it gave Binance some power more than you? Why did your own relationship with Binance bitter?
  • You have stated recently that you regret filing for bankruptcy because you can have  raised the money  necessary to plug the shortfall. Who was willing to give you money?
  • What do you believe the  ramifications  of FTX’s collapse will be for you personally? As well as the ramifications will be for crypto in general?

Ironically, just  a couple of hours earlier on the same stage,   BlackRock CEO Larry Fink said, about FTX, “ We have to see how all this plays out, ” incorporating that “ right now we can make all the judgment calls that   it looks like there was some misbehavior of major consequence. ”

Andrew Ross Sorkin did note that he believes Bankman-Fried will be coming to us live in the Bahamas (so did not feel the need to set foot on ALL OF US territory)

Bankman-Fried is due to speak around 1700ET

(NYT feed not embeddable – click image below to link to free NYT feed)

Alternative feed…

The NY Times has warned that they’re monitoring reviews of protests occurring on the conference today, which is being held at a venue within New York’s Columbus Group. Here’s what they said in an e-mail to attendees this week:

The newest York Times and our own employees defend freedom of speech everyday through our own journalism, and we respect the appropriate to peacefully assemble. At the same time, we want to ensure summit guests have an enjoyable, safe and productive experience. We do not expect these protests to impact the summit in the meaningful way, but we all ask you allot additional time for travel and abfertigung.

The acknowledgement comes after social media marketing users have urged one another to protest the event for giving Bankman-Fried a platform to share his side associated with what’s transpired this 30 days.

As a reminder, at a bankruptcy hearing last week,   FTX lawyers said that a “ substantial amount” of the company’s assets had been missing or stolen and that the exchange had been run like Mr. Bankman-Fried’s “ personal fiefdom. ”

One final thought:

Leave a Reply

Your email address will not be published. Required fields are marked *