Sam Bankman-Fried is scheduled to make its first public appearance since the FTX collapse, and investors are hoping for some answers. The company has been silent since the fiasco, which saw millions of dollars worth of assets disappear overnight. SBF has a lot of explaining to do.
First Appearance After Collapse
In the weeks since crypto exchange FTX collapsed, questions have swirled about everything from the risk management practices at Sam Bankman-Fried’s companies to who might be the next domino to fall. Bankman-Fried on Wednesday tweeted that he would in fact be speaking with New York Times’s Andrew Ross Sorkin at the summit in New York next week.
It’s unclear what kind of reception he’ll get given the questions about his business practices that have been raised in recent weeks. But one thing is certain: with the crypto industry under intense scrutiny, all eyes will be on Bankman-Fried as he tries to defend his companies’ actions. Bankman-public Fried’s persona has been relatively muted as FTX and related entities unraveled this month and he resigned as CEO. Instead of regular tv interviews, he has opted for long Twitter threads and direct messages with reporters on the platform.
Legal Difficulties for FTX’s Restructuring
In court documents, FTX lawyers claimed that Bankman-“constant Fried’s and disruptive tweeting” was subverting their restructuring efforts. Due to “conflicts,” the law firm Paul Weiss announced that it would no longer represent Bankman-Fried.
Well before billions of dollars in financial ties between the exchange operator and Bankman-Alameda Fried’s Research investment arm alarmed investors and brought down his empire, FTX’s sprawling operations raised concerns.
Prosecutors and regulators, including the Securities and Exchange Commission and the Commodity Futures Trading Commission, are now requesting assistance from new FTX CEO John J. Ray III. He took over as part of the company’s bankruptcy proceedings and is navigating what he calls a “complete lack of trustworthy financial information.”