Since the unusual circumstances surrounding the collapse of FTX came to light, controversial crypto figure Sam Bankman-Fried has been the subject of substantial backlash from vast swathes of the crypto community. The beleaguered former billionaire made various appearances in interviews where he uttered remarks suggesting that the exchange’s missing $8 billion was an “accounting error,” supposedly leading to the demise of his previously-dominant crypto exchange.
SBF Blasted for $8 Billion “Accounting Error”
Bankman-Fried’s comments about FTX’s $8 billion hole have sparked outrage in the crypto community. Notable figures in the crypto industry have called out SBF’s irresponsible claims, with Brian Armstrong, the founder of rival exchange Coinbase (NASDAQ:COIN), rejecting the FTX CEO’s excuses, asserting that the $8 billion was stolen from customers.
Nonetheless, at its first hearing in the federal bankruptcy court of Delaware, an attorney for FTX claimed that the funds were either stolen or went missing. Reacting to the bold statement, Twitter user @Sky_Cam7 wrote:
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You’re kidding? This should be prison, no? @RepMaxineWatersAn “accounting error” of $8 Billion? You can’t be that naive.Under the hypothetical (99.99%) chance that the CEO (SCREAM “CEO”) was unaware of this usage of investor dollars is grotesque.Crime at the highest level.— SkyCam (@Sky_Cam7) December 5, 2022
Another user, @Crypto_Sway, insisted: "He belongs in prison and unfortunately. Will also likely never see time." Billionaire investor Mike Novogratz joins the list of crypto personalities condemning Sam Bankman Fried’s actions since the collapse of his exchange, claiming that he is “delusional” and “should be in jail”.
Sam Bankman-Fried Donated over $1 Billion to Democrats
Although they were made public knowledge, Bankman-Fried’s donations to the Democratic Party during the recent midterm elections have been brought into question, as Elon Musk suggested that more than the initially disclosed $40 million of FTX’s users’ funds went towards political donations.
Musk claims that Bankman-Fried’s support of the Democrats could have exceeded as much as $1 billion. The Tesla (NASDAQ:TSLA) CEO remarked that such a huge donation from Bankman-Fried represents an enormous instance of fraud, considering that over $8 billion had been stolen.
On the Flipside
- Despite the backlash, Bankman-Fried, in his latest interview, noted that he did not intend to commit fraud and didn’t ‘knowingly commingle funds.’
Why You Should Care
As the FTX saga unveils, more details about the failed exchange emerge that could incriminate its CEO, Bankman-Fried.
Read Bankman-Fried’s comments on the collapse in:
‘I Did Not Knowingly Commingle Funds’ FTX’s Sam Bankman-Fried Claims
Mike’s statement on SBF is covered in:
Mike Novogratz Says Sam Bankman-Fried is Delusional, Should be in Jail