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How Sam Bankman-Fried tried to cling to FTX

In the final days Sam Bankman-Fried appeared deluded about FTX’s prospects, insisting that he could find a way to keep the company running, documents show. And as recently as last week he told employees said he regretted authorizing the bankruptcy

November 30, 2022 / 11:34 AM IST
Profile image of FTX founder and ex-CEO Sam Bankman-Fried (File Photo)

Profile image of FTX founder and ex-CEO Sam Bankman-Fried (File Photo)

David Yaffe-Bellany

When cryptocurrency exchange FTX filed for bankruptcy November 11, the company’s founder, Sam Bankman-Fried, announced the news in a contrite message on Twitter.

But his attempt to calm the situation belied what had just taken place within the company. As the crisis unfolded, a group of FTX lawyers and executives moved to strip authority from Bankman-Fried and urged the company’s top leaders to prepare for bankruptcy. For days, Bankman-Fried ignored their warnings and clung to power, seemingly convinced that he could save the firm, despite mounting evidence to the contrary.

“The exchanges must be halted immediately,” Ryne Miller, a top FTX lawyer, wrote in an email to Bankman-Fried and other staff November 10. “The founding team is not currently in a cooperative posture.”