The latest news about the collapse of FTX

It has been about 4 weeks now since the news broke about the collapse of FTX, one of the most popular exchange platforms around. The event triggered a domino effect involving multiple companies in the blockchain world.

Weeks later, more clarity has emerged regarding the situation, with FTX creator Sam Bankman Fried finally coming out publicly, explaining his side of the story and giving the law a chance to weigh in. 

Fresh news about the former CEO of FTX, Sam Bankman Fried. His statements, as conflicting as they may seem at times, have given lawmakers a clear idea of how to act. 

The causes of FTX’s collapse will be testified before Congress

Despite leaked information that Sam Bankman Fried will testify on 13 December at a hearing before Congress on the causes that led to the implosion of his exchange platform, the situation has now changed. 

In fact, the disgraced former CEO, along with his attorneys, said that before they testify they too need to have all the necessary information of the root cause of FTX’s implosion. 

Bankman-Fried said Sunday on Twitter:

“Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain. I’m not sure that will happen by the 13th. But when it does, I will testify.”

Hence, it can be inferred that Sam Bankman Fried’s intentions are to prepare as best he can for the hearing, but that it may not happen as planned on 13 December.

In a post, committee chair Maxine Waters explained that she is happy with the former CEO’s willingness to speak, but would appreciate adherence to the planned timeline:

“We appreciate that you’ve been candid in your discussions about what happened at FTX. Your willingness to talk to the public will help the company’s customers, investors, and others. To that end, we would welcome your participation in our hearing on the 13th.”

Sam Bankman Fried takes responsibility

The statements of the former golden boy of the crypto universe, sound like the words of someone seeking redemption. A few days ago, in an interview with the Financial Times he stated and explained his desire to set the record straight. 

SBF finally admitted his guilt, which was dictated (according to him) not by willful wrongdoing, but by a mistake. He took responsibility for the huge managerial failures that led to the collapse of his trading platform: 

“There were a lot of conspiracy theories floating around that had no validity. And to be clear, at its core, I f — ed up. I f—ed up big and people got hurt. And you didn’t need a conspiracy theory to get there.”

While this eagerness to speak to the public is related to his desire to clarify the issue in order to avoid blurring to conspiracy theories, SBF’s words seem almost driven by his legal team to mitigate the dire situation in which he finds himself. 

Bill Ackman, founder and CEO of Pershing Square Capital Management LP, said that the collapse of FTX, is the most egregious case he has observed in his career. 

He also wanted to share his thoughts about Sam Bankman Fried, explaining that in his opinion, it is a case of negligence rather than fraudulence. 

According to Ackman, Sam B Fried, should answer to civil liability rather than criminal liability. 

Bill Ackman’s statements set off a storm on Twitter, accusing him of being a defender of the founder of FTX. To these accusations Bill Ackman responds as follows:

“I was in attendance at the Andrew R. Sorkin interview of SBF and tweeted that I found SBF believable. Many have interpreted my tweet to mean that I am defending SBF or somehow supporting him. Nothing could be further from the truth.”

Former FTX US president seeks new funding for a start-up company

A former FTX executive and President of FTX US, Brett Harrison, following the tragic implosion of FTX, is seeking investors to launch a new crypto start-up. 

The new start-up will focus on creating crypto trading software for large investors, according to rumors the funding required to kick off the start-up is around $6 million. 

About a month before FTX’s collapse, Harrison had announced his resignation as president of FTX US, instead taking on an advisory-only role and dodging the negative wave that was washing over other executives. 

“Like most here, I was surprised and saddened by today’s news. I very much hope for an outcome that mitigates the impact on all those affected, and I’m grateful to everyone who is stepping up and continuing to build a stronger industry for us all.”

Following the collapse of FTX, Brett Harrison commented on the situation this way in a tweet.