Bankman-Fried says FTX’s bankruptcy filing was a mistake

(Reuters) – The founder of the crypto exchange FTX, Sam Bankman-Fried, said he regretted his decision to file for bankruptcy and, in an interview published by Vox, criticized regulators.

Bankman-Fried later said on Twitter that the basis of the interview, an exchange of messages on the same platform, was not meant to be public.

The collapsed company, which filed for bankruptcy last week, has appointed five new independent directors at each of its main affiliates, including Alameda research. The five new directors and the newly appointed CEO John J. Ray are working to get through the bankruptcy process.

In the interview, Bankman-Fried said the people leading FTX’s Chapter 11 bankruptcy process “wanted to burn it to the ground out of shame,” and that he had two weeks to raise $8 billion and save the company .

“That’s basically what’s important (raising the money) for the rest of my life,” he said.

The biggest mistake he made was “Chapter 11. If I didn’t do that, a withdrawal would be opening in a month and customers would be completely full.”

Regulators make everything worse, he said. “They don’t protect customers at all,” he said.

In a statement published on Twitter, Ray said Bankman-Fried had no ongoing role at FTX, FTX US or Alameda Research and did not speak for them.

FTX said it is in contact with dozens of global regulators, including the US Securities and Exchange Commission.

After Vox published the interview, Bankman-Fried said some of what he said was “thoughtless or too strong” and that he was venting about something that was not intended to be public.

“It *is* difficult to be a regulator. They have an impossible job: to regulate entire industries that grow faster than their mandate allows them to,” he wrote on Twitter, adding that the message exchange with a Vox reporter was not in question. be public.”

A Vox spokesperson said all communications with Vox reporters were on the record unless the subject and reporter agreed otherwise.

“Our reporter is clearly identified as such in her Twitter bio, she has previously interviewed Mr. Bankman-Fried, and in this case, as an added courtesy, informed him by email that she intended to write about her exchange on the record. He made no objection in his reply before it was published.”

Bankman-Fried did not immediately respond to a Reuters request for further comment.

(Reporting by Shubham Kalia and Jahnavi Nidumolu in Bengaluru; Additional reporting by Jaiveer Shekhawat; Editing by Bradley Perrett)

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