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Former FTX CEO Sam Bankman-Fried apologises for his 'mistakes,' says didn't knowingly commit fraud

Washington, United StatesEdited By: Tanisha RajputUpdated: Dec 01, 2022, 11:24 AM IST
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Sam Bankman-Fried Photograph:(Reuters)

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On November 11, Bankman-Fried resigned from FTX as the firm filed for bankruptcy protection while facing a significant financial crunch with a deluge of withdrawals from customers

In his first public appearance amid the collapse of FTX, a cryptocurrency firm that left investors with losses of billions of dollars, former FTX CEO Sam Bankman-Fired tried to distance himself from committing any fraud. 

"Look, I screwed up," he told the 'Deadlock conference' hosted by CNBC News and The New York Times, and apologised for his 'mistakes' and the firm's sudden collapse. He said that he didn't knowingly behave fraudulently.

Speaking via video call, Bankman-Fried, occasionally on verge of tears, said, "I'm deeply sorry about what happened. Clearly, I made a lot of mistakes or things I would be able to give anything to be able to do over again."

He also said that the details that surfaced online shocked him amid the fall of the cryptocurrency firm.

Two individuals familiar with the situation said that Bankamn secretly transferred $10 billion in client money to Alameda Research, causing a liquidity crunch at the FTX. However, he told Reuters that he didn't move the money to the research firm and said he did not run Alameda.

On Wednesday (Nov 30), he even said that he has close to nothing left and is now down to one credit card with nearly $100,000 in the bank.

The man once touted as a 'crypto genius' told the conference he is opening up against the advice of his lawyers from the Bahamas. When asked if he'll be travelling to the US, he said he might have to come for the upcoming congressional hearing over the company's collapse. 

On November 11, Bankman-Fried resigned from FTX as the firm filed for bankruptcy protection while facing a significant financial crunch with a deluge of withdrawals from customers. A source told Reuters that the company has been facing US investigations since mid-November on how it handled customers' funds. 

(With inputs from agencies)

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