Sam Bankman Fried, founder and former CEO of Cryptocurrency Exchange, now missing, marked the decision to give the business to a new leader during the bankruptcy saga “greater error”. According to the former Crypto executive, this decision dissuaded him from saving the business from collapsing at the last minute.
“ I could have saved FTX from bankruptcy ” – SBF
In a recent interview with the American non -profit magazine Mother Jones, Freed Bankman shared information on the previous days and after the collapse of the exchange of $ 32 billion FTX. According to the former executive, putting the company to the current CEO John J. Ray III was his “biggest error from afar”.
SBF said in the interview that, a few minutes after putting Pen on paper, he received a call concerning a potential external investment which could have saved the FTX exchange of the debacle of chapter 11. However, it was too late to revoke his signature on the exchange to a new direction when the offer arrived, added Bankman Fried.
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According to the interview, SBF and Ray were invited to the congress by the representative Maxine Waters (D-Calif.), Then president of the House Financial Services Committee, to testify in December 2022. During the preparation of his testimony for the hearing, the former CEO of the FTX received calls concerning his imminent arrest by the Bahamamian police.
Bankman Fried was subsequently extradited to the United States in January 2023, where he faced criminal accusations linked to a hijacking of customer funds (about 8.9 billion dollars) and the collapse of FTX Exchange. Now, the former FTX chief is currently serving a 25 -year prison sentence, having been found guilty of seven charges.
The role of Sullivan & Cromwell in the appointment of the new CEO
The interview revealed that the main law firm Sullivan & Cromwell (S&C) had, through the lawyer Andrew Dietderich, the rental of Ray as a chief of the restructuring in the event of a bankruptcy procedure in Freed Bankman. SBF mentioned that “extremely important pressure” came from S&C and former staff members who then worked for FTX to put a new direction.
Interestingly, Ray has filed his bankruptcy and hired Sullivan & Cromwell to supervise the process after taking control of the business. This decision raised problems of conflict of interest, because many thought that the law firm would have played a role in the mismanagement of the FTX and the possible collapse thanks to its representation in past legal issues.
In June 2024, S&C declared $ 171.8 million in the legal costs of the bankruptcy procedure. Meanwhile, the FTX Domaine began to reimburse the creditors in 2025, with a total of $ 7.8 billion distributed on September 30.
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