Sam Bankman-Fried on the FTX hack, political donations, and customers’ money
FTT coins, FTX hackers, shady political donations to the Republicans, and the hope for customers’ money: a concerned Sam Bankman-Fried (SBF) weighs in.
FTT coins, FTX hackers, shady political donations to the Republicans and the hope for the money of customers: a concerned Sam Bankman-Fried (SBF) weighs in.
Yesterday, the voice of what’s probably the most-discussed figure in crypto was heard again from many speakers: Sam Bankman-Fried (SBF) gave an interview to crypto blogger Tiffany Fong and commented on the FTX bankruptcy, the FTT coin, and the exchange hack. He also explained why he donated money to both Democrats and Republicans and gave a glimpse of the future. But these statements should be taken with a grain of salt.
FTT coins and the FTX hack
"I think FTT was more credible than most coins," SBF says at the start of the interview. He follows with little shame: "Its value was economically better supported than an average coin." He also didn’t seem worried about the central distribution of the FTT token. The ultimate reason for FTX’s collapse and the exchange token was, according to Bankman-Fried, due to the massive FTT sell-off.
Sam Bankman-Fried also commented on the FTX hack: "I limited it to about eight people. I don’t know who they all were." He hinted it could have involved a former FTX employee. He denies being complicit.
Donations also to Republicans
Last year he donated five million dollars to President Biden’s campaign and more than nine million to members of Congress. In May he announced planned donations of $100 million to $1 billion for the 2024 presidential election. He has always portrayed himself as a supporter of the American Democrats. Now Sam Bankman-Fried reveals: "I donated to both parties."
"All my Republican donations were dark. In practice, no one can imagine someone actually giving dark money. [Dark money refers to expenditures intended to influence political outcomes when the source of the money is not disclosed]."
Sam Bankman-Fried
The reason for the secrecy was the "ultraliberal idea from reporters" who "go crazy if you donate to the Republicans".
The future of FTX and customers’ money
Since Chapter 11 bankruptcy is a technical restructuring plan, FTX could resume its normal operations in the future. Bankman-Fried was indecisive and referred to the "people he would have led".
When asked whether customers would receive any form of compensation, SBF stammered but did reveal: while customers in the United States could get "one US dollar per issued US dollar" back, FTX.com victims would have to settle for "20-25 cents per US dollar". So far, this remains speculation. How much of the customers’ money from the failed crypto exchange will actually be recovered is still to be seen.
In a second interview, SBF discusses Alameda Research and its ties to Binance. He also expressed regret and said he was grateful for "those who stuck with him." Tiffany Fong noted that Bankman-Fried’s statements should be taken with a grain of salt.
