In a 15,000-word doc revealed by The New York Occasions, the disgraced crypto entrepreneur tried to share his perspective on what occurred to FTX.
Sam Bankman-Fried (SBF), the founding father of the failed crypto alternate FTX who’s charged with fraud over its collapse, wrote 15,000 phrases of what appears to be his authorized protection technique at a felony trial scheduled for subsequent month.
In response to particulars of the doc first revealed by The New York Occasions and shared by Tiffany Fong, a social media influencer, SBF doubted that Caroline Ellison — the previous CEO of Alameda Analysis — was the precise selection for the place, saying she “regularly prevented speaking about danger administration.”
“She regularly prevented speaking about danger administration — dodging my solutions — till it was too late. Each time that I reached out with solutions, it simply made her really feel worse. I’m positive that being exes didn’t assist.”
Bankman-Fried claims his considerations about Alameda intensified within the spring of 2022 when Ellison and different staff had been actively discussing a potential deficit within the agency’s accounts. The FTX founder says he was solely half-engaged, the report says.
In an extended listing of non-public photographs and reflections, SBF additionally blasted his different prime lieutenant, Sam Trabucco, who was co-chief government of Alameda. Bankman-Fried stated that Tradbucco was higher in danger administration than Ellison. Nonetheless, he was within the “strategy of quiet quitting” by late 2021. The FTX founder additionally claims Trabucco was extra in “occurring dates with a ton of men whereas crusing around the globe on a ship,” hinting he didn’t have a lot of a ardour for the work.
Bankman-Fried additionally criticized Sullivan & Cromwell, the lead chapter counsel for FTX, saying they “extremely effectively” orchestrated the narrative that he was chargeable for misappropriate use of buyer funds.
“They’ve performed it extremely effectively. Have been it not damaging to simply about the whole lot I care about in life, I might tip my cap to them.”
Ellison and Bankman-Fried’s different prime advisers have pleaded responsible to fraud costs, whereas Trabucco has not been charged with any wrongdoing. The New York Occasions notes that Bankman-Fried gave Fong his paperwork with revelations again in January. It’s unclear when precisely Fong shared the doc with the newspaper.
Bankman-Fried is about to go on trial on Oct. 3 in Manhattan. SBF was transferred to the Brooklyn Metropolitan Detention Middle, a US jail infamous for its poor circumstances, after a choose revoked his $250 million bail.
Whereas his former circle entered plea offers with prosecutors, Bankman-Fried denied all the fees filed towards him, together with counts of fraud.