Sam Bankman-Fried (SBF), founder of FTX, was once touted as the cryptocurrency king; this reputation was eroded by the stock market crash and he was arrested on fraud charges. Prior to the collapse, Bankman-Fried shared his plans to expand FTX and its legacy, spreading confidence about the future of the trading platform.
Bankman-Fried: I don’t care about my legacy
In an interview with CNBC on Sept. 16 (FTX filed for bankruptcy on Nov. 11, 2022), Bankman-Fried stated that he doesn’t care about his legacy in the crypto space and maintains his primary focus.
“I don’t give [cursing] about inheritance. I care about the impact I have, but it’s not like what I’m trying to remind myself of. At the end of the day, what matters is the impact I have.”
At the same time, he shared his long-term vision for the future of FTX despite the trading platform struggling with the long-term crypto winter.
The long-term plan, according to SBF, was to establish FTX as a global platform that would allow people to access liquidity in what it called a “sophisticated and powerful path.” Interestingly, the FTX problems started when the stock market was hit by a liquidity crisis, causing users to be unable to withdraw their funds.
In addition, Bankman-Fried stated that the exchange aims to be licensed in more jurisdictions. At one point, he claimed that FTX was the most audited platform worldwide.
“Part of that is being a global platform where people have sophisticated and powerful access to liquidity. Part of that is being fully licensed, and we think we’re already by far the most licensed crypto hub and perhaps the most licensed exchange overall, depending on how you count globally. Bankman- “We have individual licenses in dozens of jurisdictions,” Fried said.
Accordingly, industry players complained that the FTX scandal could not have occurred with proper regulations in the first place. At the same time, the crash prompted more calls to regulate the industry, even as United States lawmakers continue to announce new crypto regulatory bills.
In addition, Bankman-Fried stated that the aim of FTX is to create a customer-friendly platform that can help people manage their finances more easily and directly.
In particular, Bankman-Fried is facing allegations of embezzlement of client funds after FTX was reported to have mixed funds with SBF’s fellow firm, Alameda Research. It’s worth noting that SBF was arrested the day before he testified before Congress, who was supposed to speak about the event that led to the collapse of FTX.
Amid the crypto bear market, Bankman-Fried has emerged as a key figure in the space, trying to bail out businesses facing bankruptcy.
‘SBF is a manipulator’
In this line, Patrick McHenry, a member of the United States House of Representatives, stated that the SBF was committing an old-school scam by taking advantage of new technology. While Bankman-Fried is a major donor for different reasons, the MP noted that the FTX founder was a manipulator, which he claimed appeared in recent media tour interviews.
“This shows that he’s a manipulator with top-notch capabilities and he’s trying to get something out,” McHenry said.
Currently, SBF remains behind bars after being accused of fraud against customers by embezzling funds to pay off expenses and debts. Based on the charges, attorney Ira Lee Sorkin, who represents Bernie Madoff, the perpetrator of the largest individual pyramid scheme, warned that the SBF faces many years in prison.