The founder of FTX justified it by not noticing the

The founder of FTX justified it by not noticing the signs of the impending collapse of the crypto exchange

Sam Bankman-Fried, founder and former CEO of crypto exchange FTX, whose bankruptcy caused the collapse of the cryptocurrency market, said he developed his business too quickly and sees no signs of further trouble for the company, Reuters writes, citing his interview with the New York Times.

    REUTERS/Marco Bello

REUTERS/Marco Bello

“If I focused a little more on what I’m doing, I would do it more carefully” That’s what Bankman-Fried told the newspaper. FTX filed for bankruptcy after rival exchange Binance pulled out of its acquisition, and Bankman-Fried’s talks with other crypto exchanges and investors to raise funds to bail out stalled. Too large was the financial gap created by the misuse of FTX user funds, as well as the massive withdrawal of assets by investors who transferred more than $6 billion from accounts on the platform in 72 hours.

The US Department of Justice, the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) are currently investigating FTX’s handling of customer funds. Reuters previously reported that Bankman-Fried secretly transferred $10 billion in customer funds from FTX to his company Alameda.

When asked if FTX uses client funds to support its business, Bankman-Fried said that Alameda has amassed a large “margin position” on FTX. In other words, his company was engaged in cryptocurrency trading using leverage provided by FTX.

Bankman-Fried also declined to reveal his current whereabouts, citing security concerns.


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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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