FTX Founder Sam Bankman-Fried’s Disdain for Regulators Revealed in Trial
Despite publicly advocating for crypto regulation to protect customers, FTX founder Sam “SBF” Bankman-Fried has shown a deep disdain for regulators, as revealed during his ongoing criminal trial.
Assistant U.S. Prosecutor Danielle Sassoon questioned SBF about his previous Twitter statements supporting blockchain regulation. When asked if he recalled these statements, SBF replied, “I don’t remember.” Sassoon then asked, “But in private, you said, ‘fuck regulators,’ right?” to which SBF responded, “I said that once.” He also referred to a “subset of people” on Crypto Twitter as “dumb motherfuckers.”
In a 2021 hearing before the U.S. House Financial Services Committee, SBF testified on crypto regulation but later admitted that he viewed it as a public relations strategy.
Benefits of Drafting Crypto Regulation
During further questioning, SBF claimed that drafting crypto regulation had benefits for FTX. He stated that it would help the exchange take market share from its competitor Binance. However, FTX collapsed in November 2022 with $10 billion missing from customers’ deposits. Before the collapse, Binance had signed a letter of intent to acquire FTX but backed out after discovering the asset discrepancy.
SBF revealed that on November 7, 2022, FTX experienced massive customer net withdrawals amounting to $4 billion, leading to a liquidity crisis.
The Ongoing Trial
The criminal trial of Bankman-Fried is still ongoing and is expected to conclude by early next week.
Hot Take: FTX Founder’s Hypocrisy and Impact on Industry Reputation
The revelations from Sam Bankman-Fried’s trial have exposed his hypocrisy regarding crypto regulation. Despite publicly supporting it, he privately expressed disdain for regulators and viewed regulation as a PR move. This contradictory stance not only undermines his credibility but also tarnishes the reputation of the entire crypto industry.
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