Sam Bankman-Fried to Launch New Venture in Order to Repay FTX Collapse Victims – Here's What You Should Know

The former CEO of troubled crypto firm FTX, Sam Bankman-Fried, has said that he is planning to start a new business where he will gather enough resources to pay back the victims affected by the FTX exchange’s collapse.

Sam Bankman-Fried to launch a new business

Bankman-Fried has continued to deny that he was involved in fraud after the FTX exchange collapse after failing to process user withdrawals. While speaking to BBC from a luxury complex in the Bahamas, Bankman-Fried said he was not as competent as he initially thought.

“I didn’t knowingly commit fraud, I don’t think I committed fraud, I didn’t want any of this to happen. I was certainly not nearly as competent as I thought I was,” Bankman-Fried said.

He has also said that he is worried about a possible arrest. Before its demise, FTX was one of the largest cryptocurrency exchanges globally by trading volumes. However, the exchange filed for bankruptcy last month after a bank run on the exchange. The exchange has been accused of using customer funds to prop up Alameda Research, a crypto fund that Bankman-Fried also founded. It is estimated that FTX has around one million creditors.

While speaking to the BBC, Bankman-Fried said he hoped to find ways to pay back the customers affected by the exchange’s collapse. When asked whether he wanted to start a new business to earn money that will pay back exchange users, he said he would try everything possible to pay back the investors.

The remarks made by Bankman-Fried during the recent interview with BBC echo what he has said in the past. On Twitter, Bankman-Fried has repeatedly reiterated that he would do right by the exchange users and even recently supported an idea to issue new FTT tokens and relaunch the FTX exchange.

The current CEO of FTX, John. J. Ray II, who is overseeing the exchange’s bankruptcy proceeding, has said that the bankruptcy was one of the worst things he had ever seen. John J. Ray III has presided over some of the worst bankruptcies in history, including Enron.

Bankman-Fried to testify before the US Congress

Bankman-Fried will be testifying in a Congressional hearing on December 13. During the hearing, he will talk about the events that led to FTX’s collapse. John J. Ray will also testify before Bankman-Fried gives his testimony.

One of the main allegations against Bankman-Fried is using customer funds on Alameda Research, a hedge fund he also founded. While Bankman-Fried has said that he did not know the level of risk from Alameda trades, reports have it that he knowingly comingled customer funds with those of FTX.

A former senior FTX executive had also said that Bankman-Fried lied when he said he did not understand the level of dependence between the two companies. However, Bankman-fried has denied allegations that he willingly committed fraud.

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