Sam Bankman-Fried, founder and former CEO of the now-defunct cryptocurrency exchange FTX, tagged the decision to hand over the firm to a new leader during the bankruptcy saga his “single biggest mistake.” According to the former crypto executive, this move deterred him from saving the company from collapsing at the last minute.
SBF claimed in the interview that, minutes after putting pen to paper, he received a call about a potential external investment that could have saved the FTX exchange from the Chapter 11 debacle. However, it was too late to revoke his signature on the exchange to a new management when the offer came in, Bankman-Fried added.
According to the interview, SBF and Ray were invited to the Congress by Rep. Maxine Waters (D-Calif.), then chair of the House Financial Services Committee, to testify in December 2022. While preparing his testimony for the hearing, the former FTX CEO received calls about his imminent arrest by the Bahamian police.
The interview revealed that leading law firm Sullivan & Cromwell (S&C) had, through attorney Andrew Dietderich, proposed Ray’s hire as chief restructuring officer in case of bankruptcy proceedings to Bankman-Fried. SBF mentioned that “extremely large pressure” came from S&C and former staff members who were then working for FTX to hand over to a new management.
Interestingly, Ray filed for bankruptcy and hired Sullivan & Cromwell to oversee the process after he took control of the company. This move raised conflict of interest concerns, as many believed that the law firm had allegedly played a role in FTX’s mismanagement and eventual collapse through its representation in past legal issues.
