Sam Bankman-Fried, the discredited creator of FTX, has committed to testify before Congress regarding the collapse of his cryptocurrency platform, despite being told by Bernie Madoff’s top attorney to keep his mouth shut.
Bankman-promise Fried’s to appear on Capitol Hill was made as the 30-year-old ex-billionaire embarked on a media apology tour, during which he sought to remove himself from the issue despite the fact that he still owes billions to investors. Rep. Maxine Waters (D-California) requested that the former CEO of FTX testify on December 13.
Bankman-Fried tweeted on Sunday, “Once I have completed learning and analyzing what occurred, I would feel obligated to testify before the committee and explain.” “I doubt that will occur by the 13th. When that time comes, I shall testify.”
Despite an imminent legal crackdown and severe public condemnation, Bankman-Fried has granted interviews with the New York Times, Bloomberg, ABC’s “Good Morning America” and other sources in recent days.
Bankman-Fried stated at the New York Times’ DealBook conference that he was speaking to the media against the advice of his legal counsel.
Rep. Waters and the House Financial Services Committee:
After learning and examining what occurred, I would feel obligated to testify before the committee and provide an explanation.
I doubt that will occur by the 13th. But when it does, I will testify. https://t.co/c0P8yKlyQt
— SBF (@SBF FTX) December 4, 2022
Sam Bankman-Fried has given numerous prominent interviews on the fall of FTX.
Ira Sorkin, the primary defense counsel for disgraced Madoff, stated that Bankman-Fried is making a mistake by being so vocal in the media.
Sorkin told Bloomberg on Friday, “The first order of business is to remain silent.” “You will not persuade the public. Regulators and prosecutors are the only parties that will listen to what you have to say.”
“Clients often assume they are more intelligent than their attorneys. This individual is thirty years old, and he is not brighter than his attorneys, according to Sorkin. “They should be ordering him to quiet talking every five minutes, but clients don’t always listen.”
Bloomberg reports that legal experts believe Bankman-Fried “may just be exploring an it was all a big error defense” to explain what went wrong at FTX.
Reuters alleged that Bankman-Fried shifted $10 billion in customer cash from FTX to his sister cryptocurrency trading business, Alameda Research, to compensate losses. At least $1 billion of customer funds remain unaccounted for.
Former defense counsel for Bernie Madoff stated that SBF is making a grave error.
Getty Pictures
Since FTX’s demise, Bankman-public Fried’s statements have been under intense investigation.
In the previous week alone, Bankman-Fried strangely claimed to have “misaccounted” a staggering $8 billion in FTX money immediately before the cryptocurrency platform’s breakdown — telling Bloomberg he was “real sloppy with this mental math” about FTX’s balance sheet.
Bankman-Fried also evaded a question about potentially facing jail time when appearing to “Good Morning America” – and downplayed analogies between his own mishandling of FTX client cash and Madoff’s famed scam to bilk investors.
Bankman-Fried stated, “When examining the traditional Bernie Madoff narrative, there was no actual business.” According to my understanding, the entire situation was a Ponzi scam. That was a legitimate business, FTX.”