SBF Speaks For The First Time After The Collapse

The November 29 interview with YouTuber Tiffany Fong was the first since the collapse. According to SBF (Sam Bankman-Fried), contrary to public claims, there was no backdoor access to FTX where he manipulated accounts. At the same time, the SBF admitted it was mistaken in handling Alameda’s balance sheet. He also stated that the situation was a “mislabeled accounting incident”.

“I absolutely dislike building a backdoor in this system. I could barely use the system. I knew this system in terms of user interface. I was wrong on Alameda’s balances on FTX by a sizable number and embarrassing levels. It was because of a very poorly labeled accounting incident.”

SBF claimed that the FTX crash was caused not by the reported liquidity crunch, but by what it called a “major correlation of things during free market movements.”

“It wasn’t liquidity that caused this crash. What caused the crash was another very embarrassing thing that I underestimated. And that’s the big correlation of things during free market movements.”

Bankman-Fried said his lawyers were opposed to taking full responsibility for the collapse. During the interview, she claimed that the lawyers did not approve of her approach to making public posts. After the collapse, SBF continued to take to Twitter to keep customers informed about the progress of the situation.

The FTX founder and backers of the exchange are facing an $11 billion class action lawsuit. According to a lawsuit filed in a Florida court, FTX is accused of violating crypto accounts. Pressure is mounting for the SBF to be extradited to the United States and facing charges for its role in the collapse. On the other hand, FTX investors and clients are waiting for a possible path on any chance of compensation.

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