- FTX founder Sam Bankman-Fried is racking up criticism after his crypto exchange implosed.
- Industry experts called him a “fraudster” and some even suggested he go to jail.
- Here’s what leading voices like Elon Musk, Bill Ackman, and Binance CZ boss have said, in 8 main quotes.
Once considered the white knight of crypto, disgraced former FTX boss Sam Bankman-Fried is now racking up criticism after the shocking collapse of the digital asset exchange he founded.
FTX’s implosion in November opened a Pandora’s box for the company. This led to serious allegations of fraud brought to light by federal authorities – including questions about how he handled $10 billion in user funds.
Bankman-Fried is being questioned over allegations that he manipulated the crypto market and mismanaged client funds. He was also accused of orchestrating exchanges to undermine the Tether digital token that risked a crypto crash.
Now the crypto CEO is under fire from all sides, from Elon Musk and Bill Ackman to “Shark Tank” investor Mark Cuban. Here’s what 8 influencers have to say about the founder of FTX.
Elon Musk, CEO of Twitter, Tesla and SpaceX
“Let’s just give him some adult time out in the big house and move on,” Musk said on Twitter, hinting that he thinks Bankman-Fried should go to jail.
Mark Cuban, billionaire owner of the Dallas Mavericks NBA team
“I don’t know all the details. But if I was him, I’d be scared of going to jail for a long time,” the ‘Shark Tank’ investor told TMZ.
Brian Armstrong, CEO of Coinbase
“It appears that a massive fraud has been committed. I believe the client funds appear to have been transferred to his hedge fund of which he owned 90%, and those client funds were lost,” Armstrong said in an interview. podcast with Stratechery.
Given this, the crypto exchange boss said he felt like the mainstream media gave Bankman-Fried softball interviews.
“Even that tweet back and forth with Maxine Waters, very politely asking her to attend a hearing, and politely adjourning her — that was weird,” he said.
“This guy just did a $10 billion fraud, and why is he being treated with kid gloves?”
Bill Ackman, CEO of hedge fund Pershing Square
“The @FTX_Official fiasco is, at a minimum, the most egregious and large-scale case of gross corporate negligence I have observed in my career, and that conclusion is reinforced by recent public statements from SBF,” Ackman said. on Twitter.
The billionaire investor added that his previous tweet appearing to support Bankman-Fried had been misinterpreted.
Changpeng “CZ” Zhao, CEO of Binance
“SBF perpetuated a narrative painting me and other people as the ‘villains.’ when FTX imploded and runs a rival crypto. swap.
“SBF is one of the greatest fraudsters in history, he is also a master manipulator when it comes to the media and key opinion leaders,” he tweeted.
“FTX committed suicide (and its users) because it stole billions of dollars in user funds. Period.”
Mike Novogratz, CEO of Galaxy Investment Partners
“It was delusional. Let’s be very clear. Sam was delusional about what happened and his guilt,” Novogratz said.
The crypto bull thinks Bankman-Fried will likely end up in jail, but doesn’t think he was acting alone.
“They perpetuated a big fraud and it wasn’t just Sam. You don’t pull that off with just one person.”
Anna Sorokin, Convicted Fraudster
“It’s a Ponzi scheme, what he did,” Sorokin told Insider.
Sorokin — a fake Russian heiress whose New York elite scam inspired Netflix’s “Inventing Anna” — thinks Bankman-Fried is insincere in his apology to the media.
“If he were a woman, he would either be portrayed as a total crook, or totally inadequate and unfit, or both,” she said. “Now he can play this seriously goofy, non-threatening, seemingly well-meaning serious guy who tries to make things right with customers.”
But she accepts the former FTX boss’ account of what happened – that he never intentionally misused funds or defrauded anyone – may be true.
“I don’t know which is worse – that he actually wasn’t in control, or if he’s trying to cover it up now,” she said. “It’s fucking scary if he was so careless.”
John J. Ray, new CEO of FTX
“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial reporting as has occurred here,” Ray said in the Chapter 11 filing of the crypto exchange.
“From the compromised integrity of systems and faulty regulatory oversight overseas, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.” , added Ray, who oversaw Enron’s bankruptcy earlier in his 40-year career.