- FTX allowed withdrawals for Bahamian residents so that the exchange could ‘have a future.’
- Sam Bankman-Fried claims a ‘regulatory path forward for the exchange’ could be achieved.
- He rejects the idea that regulators asked him to open up withdrawals.
As each day passes, more information becomes available surrounding the FTX saga. In a rather candid and seemingly unstructured interview with Tiffany Fong, Sam Bankman-Fried reveals his motives behind certain actions taken since the collapse of his crypto behemoth FTX and trading arm Alameda Research.
One of the more publicly critiqued decisions was to open up withdrawals solely for the residents of Bahama and Antigua. The former is where SBF resides, as well as where FTX is incorporated. The Caribbean nation is also considered a crypto haven or, at the very least, crypto-friendly.
In the interview, Bankman-Fried defends his actions but does admit the decision seemed ‘sh*tty’:
“I think I made the right decision… I gave them [the Bahamian Government] a one day heads up that we were going to do it and they didn’t say yes or no, they didn’t respond. And then we did it. The reason I did it was because it was critical to the exchange being able to have a future, because of where I am right now… You do not want to be in a country with a lot of angry people in it. And you do not want your company being incorporated in a country with a lot of angry people in it, and so it was realistically speaking, shitty, but the path forward for FTX involved Bahamians not being pissed at it… It wasn’t insider withdrawals, this was trying to create a regulatory path forward for the exchange.”
Bankman-Fried’s decision to reopen withdrawals for the Bahamas does seem rooted in fear for his own personal safety, but there are some questions to be had about the truthfulness of this statement.
He claims that the path forward involved Bahamians ‘not being pissed at it [FTX]’, and states that he was trying to create a regulatory path forward – despite no response from the Bahamian Regulator or Government.
The question is left open as to how appeased and reimbursed citizens could have an effect on a regulatory path forward.
The interviewer Tiffany Wong states:
“I am fully aware that Sam has full incentive to represent himself in as positive light as possible, so I do take a lot of his answers with a grain of salt, especially without hard evidence.”
On the Flipside
- The new release of Forbes’ ‘30 under 30’ does not include the FTX team, as their net worth is decimated.
- A very large bar tab? FTX’s creditors include Amazon (NASDAQ:AMZN) and a Bahamas beachfront bar with eye-watering sums.
Why You Should Care
A personal update from FTX’s Sam Bankman-Fried is important for the crypto community, as many people seek transparency around its collapse. This is the first personal interview with SBF, and although he is inclined to defend himself – it does allow the listener to make their own judgment on the situation. As always, the progression of this saga can affect the markets!
Read more about the FTX contagion:
Silvergate (SI) Says It Has Less Than $20M of BlockFi Deposit Exposure
The community is still searching for answers:
Crypto Influencers Flock to Bahamas to Find Sam Bankman-Fried