FTX’s Sam Bankman-Fried Calls Handing Firm Over To New CEO ‘His Biggest Mistake’ — Details

Sam Bankman-Fried, founder and former CEO of the now-defunct cryptocurrency alternate FTX, tagged the choice at hand over the agency to a brand new chief throughout the chapter saga his “single largest mistake.” According to the previous crypto govt, this transfer deterred him from saving the corporate from collapsing on the final minute.

‘I Could Have Saved FTX From Bankruptcy’ – SBF

In a recent interview with non-profit American journal Mother Jones, Bankman-Fried shared insights into the times earlier than and after the collapse of the $32-billion FTX alternate. According to the previous govt, handing over the corporate to the present CEO John J. Ray III was his “single largest mistake by far.”

SBF claimed within the interview that, minutes after placing pen to paper, he obtained a name a couple of potential exterior funding that would have saved the FTX alternate from the Chapter 11 debacle. However, it was too late to revoke his signature on the alternate to a brand new administration when the supply got here in, Bankman-Fried added.

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According to the interview, SBF and Ray had been invited to the Congress by Rep. Maxine Waters (D-Calif.), then chair of the House Financial Services Committee, to testify in December 2022. While getting ready his testimony for the listening to, the previous FTX CEO obtained calls about his imminent arrest by the Bahamian police.

Bankman-Fried was subsequently extradited to the United States in January 2023, the place he confronted felony expenses associated to buyer funds misappropriation (about $8.9 billion) and collapse of FTX alternate. Now, the previous FTX chief is at present serving a 25-year jail sentence, having been discovered responsible of seven felony expenses.

Sullivan & Cromwell’s Role In New CEO Appointment

The interview revealed that main legislation agency Sullivan & Cromwell (S&C) had, by means of lawyer Andrew Dietderich, proposed Ray’s rent as chief restructuring officer in case of chapter proceedings to Bankman-Fried. SBF talked about that “extraordinarily giant stress” got here from S&C and former workers members who had been then working for FTX at hand over to a brand new administration.

Interestingly, Ray filed for chapter and employed Sullivan & Cromwell to supervise the method after he took management of the corporate. This transfer raised battle of curiosity issues, as many believed that the legislation agency had allegedly performed a job in FTX’s mismanagement and eventual collapse by means of its illustration in previous authorized points.

In June 2024, S&C declared $171.8 million in earnings from authorized charges from the chapter proceedings. Meanwhile, the FTX property began repaying collectors in 2025, with a complete of $7.8 billion distributed as of September 30.