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https://nu.federati.net/url/288704 [www cnbc com]
#FTX former CEO #SBF says he did not intend to commit fraud.
> triking a contrite tone, former FTX CEO Sam Bankman-Fried said he “didn’t do a good job” at upholding his responsibilities to regulators, customers, and investors in a hotly anticipated conversation with CNBC’s Andrew Ross Sorkin at the Dealbook Summit.
> “I didn’t ever try to commit fraud on anyone,” Bankman-Fried said. “I saw it as a thriving business and I was shocked by what happened this month.”
> Sorkin asked Bankman-Fried why FTX and Bankman-Fried even had access to customer money.
> “I wasn’t running Alameda, I didn’t know exactly what was going on, I didn’t know the size of their position,” Bankman-Fried said. “A lot of these are things I’ve learned over the last month [in the days leading up to bankruptcy.
Now, what seemed to have sunk the platform was the revelation that his #Alameda fund was heavily into FTX's own #cryptocurrency #token ... and then later learning that customers' FTX account funds had been moved into Alameda. If he'd let customers' funds alone and not drained from the exchange to support the investment fund. ( https://nu.federati.net/url/288705 [www cnbc com] )
> The quant trading firm Sam Bankman-Fried founded was able to quietly use customer funds from his exchange FTX in a way that flew under the radar of investors, employees and auditors in the process, according to a source.
> The way they did it was by using billions from FTX users without their knowledge, says the source.
> Alameda Research, the fund started by Bankman-Fried, borrowed billions in customer funds from its founder’s exchange, FTX, according to a source familiar with company operations, who asked not to be named because the details were confidential.
If he'd not allowed the misuse of customer funds, even if Alameda collapsed, FTX probably would have continued with little disruption.