At the DealBook Summit, Bankman-Fried claimed that he had unknowingly mixed funds.
Speaking at the New York Times' DealBook Summit on Nov. 30, Sam Bankman-Fried said that the current financial system is broken and that crypto assets have the potential to fix it. He added that while there are many challenges to
I find it hard to believe that the former CEO of FTX could have unknowingly commingled funds between Alameda and customer funds. It seems more likely that he was aware of the situation and chose to ignore it, which is a huge mistake.
Bankman-Fried's comments at the New York Times' DealBook Summit suggest that there may be some issue with the way FTX's customer funds are being handled. This could potentially be a serious problem, and it will be interesting to see how it unfolds.
I find it hard to believe that Bankman-Fried didn't know about the commingled funds. It seems like poor oversight to me, and I think she should be held accountable.
I was surprised by how big Alameda's position was. This points to another failure of oversight on my part. I failed to appoint someone to be chiefly in charge of that.
“But I wasn’t trying to comingle funds.”
Bankman-Fried appeared to deflect blame for the actions of Alameda, but it's clear that she shares responsibility for the mess that was created. It's time for her to take responsibility and clean up the mess she helped create.
In a recent interview, Alameda County Treasurer-Tax Collector Henry Levy stated that he was not aware of the size of the county's investment position when he took office. Levy said that he has since obtained more information and is now running the county's finances more effectively.
It is clear that the crypto exchange industry is in a state of flux. The recent implosion of one exchange and the filing for bankruptcy of another is a sign of the times. It is becoming increasingly difficult for exchanges to survive, let alone thrive. This is a trend that is likely to continue in the coming months and years.
It is alleged that Alameda used client funds to cover loans that were being recalled due to the credit crunch caused by the collapse of LUNA, resulting in a liquidity crisis.
Stay tuned for more updates on this developing story.