TLDR
- SBF claims FTX was solvent in November 2022 and had enough assets to repay customers during recent prison interview
- Former FTX CEO described political shift from supporting Democrats in 2020 to favoring Republicans by 2022
- SBF’s parents are pursuing clemency efforts to secure pardon from Republican President Trump
- SBF received 25-year prison sentence on March 28, 2024, for role in FTX collapse
- Experts say chances of presidential pardon are low compared to other high-profile cases like Ross Ulbricht
Sam Bankman-Fried, the former CEO of FTX, spoke from Manhattan Detention Center in a series of interviews on February 18, making new claims about the cryptocurrency exchange’s collapse and revealing his political transformation over recent years.
During three 15-minute conversations with The New York Sun’s AR Hoffman, Bankman-Fried maintained that FTX had enough assets to repay all customers when it collapsed in November 2022. “There were enough assets to pay all customers back in full,” he stated, placing blame on law firm Sullivan & Cromwell for the exchange’s downfall.
The interview comes after Bankman-Fried received a 25-year prison sentence on March 28, 2024, for his role in the collapse of FTX. Judge Lewis A. Kaplan, who presided over the case, said during sentencing that the “punishment must fit the seriousness of the crime.”
Bankman-Fried expressed frustration with Judge Kaplan’s handling of the trial, claiming the judge showed bias. He said Kaplan allowed prosecutors to tell jurors that customers had lost all their money while preventing the defense from addressing these claims.
Clemency
The former crypto executive’s parents, Joseph Bankman and Barbara Fried, are now pursuing clemency efforts to secure a pardon from Republican President Donald Trump. However, William Livolsi, executive director of White Collar Support Group, believes SBF’s chances of obtaining a pardon are limited.
Bankman-Fried revealed that his earlier Democratic Party donations during the 2020 election were aimed at preventing the party from “becoming the party of Bernie Sanders.” He donated approximately $40 million to political candidates and PACs in 2022 before FTX’s collapse.
The former CEO described a shift in his political views, stating that he viewed himself as “center-left” initially but changed his stance by 2022. He expressed disappointment with the Biden administration’s approach to cryptocurrency policy, saying, “The Biden administration was just incredibly destructive and difficult to work with, and frankly, the Republican Party was far more reasonable.”
The bankruptcy estate of FTX has reached $15 billion, which Bankman-Fried points to as support for his claims about the exchange’s solvency. However, customer repayment efforts continue to face delays due to ongoing legal battles, including a $1.8 billion lawsuit involving Binance.
When asked about his future plans if released, Bankman-Fried remained cautious:
“It’s hard to say. Right now, I have 25 years ahead of me, and I try not to think too much about the future because it’s out of my control. If my appeal is successful, I’d think hard about how I could be productive again.”
Judge Kaplan criticized Bankman-Fried’s behavior during the trial, describing him as “evasive” and “hair-splitting.” The judge stated, “I have been doing this job for close to 30 years. I have never seen a performance like that.”
Livolsi pointed out that unlike Ross Ulbricht’s case, which became a campaign promise during the 2024 election, Bankman-Fried’s situation lacks similar political momentum for a pardon.
The interview also touched on the Department of Justice’s internal changes, with Bankman-Fried mentioning Danielle Sassoon’s departure. He reflected on losing billions of dollars that he had planned to use for altruistic purposes.
Current legal proceedings continue to affect customer repayment timelines. The bankruptcy process faces various challenges, including complex litigation and asset recovery efforts.
The latest developments in the case include ongoing bankruptcy proceedings and legal battles that could impact the timeline for customer repayments. The $15 billion bankruptcy estate remains subject to various claims and legal obligations.
These interviews mark Bankman-Fried’s first detailed public statements since his sentencing, providing new insights into his perspective on FTX’s collapse and his current situation.
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