FTX CEO: Bankruptcy filing a big mistake

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Changing tack is FTX CEO Sam Bankman Fried, who appears to have said he regretted his decision to declare bankruptcy and, in an interview published by Vox, criticized regulators. After ‘I messed up’, it was the turn of ‘I made a mistake’.

Sam Bankman Fried was quick to tweet that the basis of the interview was an exchange of messages on the same platform that should not have been public.

“In the interview, Bankman Fried said that those in charge of the Chapter 11 bankruptcy proceedings of FTX were ‘trying to ruin everything out of shame’ and that he had two weeks to raise $8 billion and save the company.”

“That’s basically all that matters (raising money) for the rest of my life,” he stressed.

The bankruptcy petition

His one big mistake was “Chapter 11 (the bankruptcy petition). If I hadn’t done that, withdrawals would have opened in a month, with customers completely covered”

“Regulators are making everything worse,” he added. “They don’t protect customers at all,” he argued.

After the interview was published by Vox, Bankman Freud said that some of what he had said was “misplaced or exaggerated” and that he was expressing himself about something that was not intended to be made public.

“It’s really hard to be a regulator. They have a very difficult job: regulating entire industries that are growing faster than their mandate allows,” he tweeted, adding that the exchange with the Vox reporter “was not intended to be public.”

However, yesterday he added another 18 tweets to the thread, explaining that he intends to do his best to save his clients’ money, talking about how difficult it is to regulate the crypto industry and recalling that before the FTX collapse he was on the cover of every magazine. “We got overconfident and got careless,” he confessed.

As he explained, his firm was managing $10 billion a day in turnover a few weeks ago, but there was too much leverage, more than he realized. A bank run and the market collapse drained liquidity.

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