FTX’s former CEO says “I unknowingly commingled funds between companies”

Sam Bankman-Fried (SBF) claimed that he was unaware of the funds mingling between multiple crypto companies and it was a part of a mistake. 

FTX was a second-ranked crypto company. But it is now not more than a bankrupt platform. On 8 November, FTX was not able to provide services fully because of the low liquidity issue. Finally, on 12 November, the company filed for bankruptcy under Chapter 11 in a US district court with almost all affiliated companies like FTXUS, Alameda Research, etc. 

On 30 November, Sam Bankman-Fried (SBF), founder & former CEO of FTX exchange, appeared in a video conference at the New York Times’ DealBook Summit. In the interview, he was questioned by the host whether the intermixing of the funds of FTX with its subsidiaries was intentional. 

SBF said that the intermix of funds between the companies happened without his personal Knowledge.

“I unknowingly commingled funds (…) I was frankly surprised by how big Alameda’s position was which points to another failure of oversight on my part and failure to appoint someone to be chiefly in charge of that,” SBF said.

Further, SBF said that he was not deeply linked with the financial activities of Alameda Research and what happened at that time he was personally unaware. 

According to reports, the FTX exchange transferred the user’s funds to Alameda Research and the Alameda team used those funds to cover the loan. When during the panic situation the majority of the customers tried to withdraw their funds from FTX then FTX was not able to give withdrawal & finally on 11 November halted the services fully and filed for Bankruptcy on 12 November. 

Earlier in an interview, SBF said that the FTX token( FTT), a Native token of FTX exchange, was much better than other crypto assets because of its unique use case, burn mechanism & cash flow. 

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