Sam Bankman-Fried: The Shady Billionaire Behind FTX

Sam Bankman-Fried is the founder and former CEO of FTX. In an interview with Tiffany Fong published Tuesday, Bankman-Fried explained why FTX prioritized Bahamian withdrawals.

Bankman-Fried told Fang that the collapse of his exchange’s token FTT led to a bank run not because of any margin calls directly, but because of a massive sell-off driven by fear.

Faced with a liquidity crisis and forced to admit that the exchange did not hold one-to-one reserves of client funds, FTX froze withdrawals for all customers on November 9. The next day, FTX announced that Bahamian “regulators” ordered it to enable withdrawals for its citizens.

By Evey Lovelace

You May Also Like