Is SBF Starting A New Business?

The dust has not yet settled on the FTX debacle, and ex-CEO Sam Bankman-Fried has expressed interest in starting a new business venture. 

New Venture To Pay Back Creditors 

The disgraced former CEO of the bankrupt crypto exchange FTX has admitted that a new business venture could help him pay back the funds he owes to many customers. During a BBC interview held on December 10, Bankman-Fried was asked if he would consider starting a new business to repay FTX users. 

He responded with, 

“I would give anything to be able to do that. And I’m going to try if I can. I’m going to be thinking about how we can help the world and if users haven’t gotten much back, I’m going to be thinking about what I can do for them. I think at the very least I have a duty to FTX users to do right by them as best as I can.”

Mismanagement Or Fraud? 

Bankman-Fried has a lot on his shoulders if he genuinely intends to refund all the creditors and investors who lost funds in FTX. The bankruptcy filing paperwork claims the company had over a million creditors, with total losses ranging between $10 billion and $50 billion. He has appeared contrite in the face of all the media scrutiny and has claimed that he was unaware he was committing fraud. Bankman-Fried also admitted his own incompetence and claimed that the demise of the crypto exchange was due to mismanagement and not a fraud. 

He said, 

“I didn’t knowingly commit fraud, I don’t think I committed fraud, I didn’t want any of this to happen. I was certainly not nearly as competent as I thought I was.”

SBF Could Be Subpoenaed To Testify

At the BBC interview, Bankman-Fried was also asked about the charges against him and the possibility of a prison sentence. In addition, multiple regulatory agencies, like the Financial Services Committee and the Senate Banking Committee, are investigating the FTX drama and have requested his presence at investigative hearings. 

Bankman-Fried has shown his reluctance to attend these hearings, to which FSC Chair Maxine Waters has responded that the committee would subpoena him to testify if he did not attend voluntarily. 

When his crypto exchange crashed, Bankman-Fried lost most of his fortunes, which were tied up in FTT, the native token of FTX. As a result, his net worth dropped by approximately $15 billion, which is a whopping 95%, resulting in him losing the “billionaire” title. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.