FTX founder and former chief executive Sam Bankman-Fried said he expanded his business too quickly and saw no signs of trouble at the exchange, whose downfall sent shockwaves through the cryptocurrency industry, the New York Times reported on Monday. -Friday (14).
“If I had been a little more focused on what I was doing, I would have been more thorough,” Bankman-Fried said in an interview with the newspaper.
FTX filed for bankruptcy on Friday, one of the biggest cryptocurrency booms, after traders rushed to withdraw $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed bailout deal. .
The US Department of Justice, the Securities and Exchange Commission and the Commodity Futures Trading Commission are now investigating how FTX handled customer funds, a source told Reuters.
Bankman-Fried, who lives in the Bahamas, declined to comment on his current location, citing security concerns, the paper said.
When asked whether FTX used client funds to support the Alameda Research trading firm he founded, Bankman-Fried told the New York Times that Alameda had built up a large “margin position” in FTX.
“It was substantially bigger than I thought,” he said and added, without providing details, that the position size was in the billions.
Reuters reported last week that Bankman-Fried had secretly transferred $10 billion in funds from FTX clients to Alameda.
Source: CNN Brasil
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