Sam Bankman-fried has made his first public appearance at the New York Times DealBook Summit, since the meltdown of FTX where he discussed the reasons for the demise of FTX.
Sam Bankman-Fried the former CEO of FTX was interviewed by Andrew Ross Sorkin of the New York Times, speaking virtually at the Dealbook Summit the moderator asked Sam if his lawyers suggested he conduct the interview, and his reply was "No, they are not".
Sam also stated what when wrong with his exchange FTX and said that all American customers are alright in terms of clients assets, FTX U.S the American trading platform is solvent. Sam was surprised why FTX U.S is not processing customers' funds.
The moderator Andrew Ross asked Sam what happen with FTX and its executives on risk management:
“We completely failed on risk management and conflict of interest risk. There was no person in charge of positional risk on FTX.” According to Sam FTX former CEO
He further stated that:
Firstly, FTX didn’t have a board overlooking the operations. The problem is there were too many boards of FTX Japan, Singapore, Europe. As a result, no singular entity oversaw any form of global risk management.“I obviously wish that I spent more time dwelling on the downsides and less time thinking about the upsides. Had I been a bit more concentrated on what I was doing, I would have been able to be more thorough,” he said. “That would have allowed me to catch what was happening on the risk side.”
He concluded by saying:
“I made a lot of mistakes, never tried to commit fraud. I was not really cautious enough from a downside perspective. I was looking at a 30% down move; then, a 95% down move happened.”