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Stupidity does not free from guilt, Sam Bankman-Fried



Key facts:
  • “I was wrong,” “I am a fool,” were the repeated statements of Sam Bankman-Fried.

  • Bankman-Fried tried to clean up his image by justifying that he did not know what he was doing.


Sam Bankman-Fried, or SBF as he is known on social media, has been accused of being primarily responsible for the collapse of FTX. Calling himself an “idiot” and wanting to prove that he didn’t know everything that was going on inside the exchange, or that he “didn’t have enough information.”

If you have been living disconnected from the world, I must tell you that the news of the year was the bankruptcy of FTX, the world’s third largest stock exchangeAlameda Research, the trading arm of FTX-also founded by SBF-was the cause of the bankruptcy. used FTX’s client funds as equity capital. (activity considered illegal).

A to be disclosed Users began massively withdrawing their funds from the exchange, which had no way to cover withdrawal requests and ended in an explosion. declaring bankruptcy Nov. 11.

Since the seriousness of FTX’s situation began to be revealed, shortly before the bankruptcy filing, Bankman-Fried commented on Twitter, “I screwed up and should have done better,” in a kind of Mea Culpa. In his discernment SBF Tweeter Has taken responsibility for the failureor so he implied. This seemed a sensible attitude for an executive director.

However, recent interviews seem to show that he is now engaged in an image-washing operation. Declaring himself an “idiot” and hinting that this was going on behind his back.

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The Twitter Space interrogation: the torture of Sam Bankman-Fried

Despite the situation with FTX, SBF was expected to disappear from the public eye.But the situation was exactly the opposite. The ex-CEO gave numerous interviews, such as one given to to the New York Time (NYT)Nov. 30.

In her interview with the NYT, Bankman-Fried. denied being involved in any kind of fraud at the FTX. Saying that it was only mismanagement. The NYT reports that when asked if SBF was aware of the legal liability it might face, SBF was evasive.

Sam Bankman-Fried.
Sam Bankman-Fried stated that his legal advisers (his parents) did not want him to present this interview. Source: The New York Times.

Following the interview on December 1, SBF agreed to meet in a Twitter spacealong with investor Mario Nawfal. Who closely followed the events following FTX’s failure, bringing together personalities such as Elon Musk, Kim Dotcom (creator of Megaupload) and others.


Reference Binance countries

In this case, SBF was open to answer questions from the community.but the atmosphere was less than favorable for the former CEO. From the beginning the questions were incisive and he was asked if he was aware of the situation at FTX and how Alameda Research was making illegal use of client funds.

SBF’s statements were always evasive and not at all explanatory. Moderators tried to simplify the question to prevent Bankman-Fried from escaping, but in the end he merely justified himself by saying that he “didn’t know what was going on” or that he was unsure of certain dates or data. The SBF wanted to imply that it did not know what was going on with the funds and that it did not have access to all the data. Each response culminated in a “I’m not 100 percent sure that’s what happened.”

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Throughout the interrogation-which turned out to be such-SBF kept repeating that he was an idiot and had “ruined” everything. It was an inelegant way of trying to absolve himself of the responsibility he had initially admitted.

It seems clear that Sam Bankman-Fried is aware of the legal liabilities he faces and that his strategy is to play dumb, implying that he is an incompetent CEO, not a fraudulent CEO.

“I am a very smart idiot.”

Sam Bankman-Fried now tries to give the image of an innocent child who did not know what he was doing. Justifying himself as “an idiot.” at the head of a $32 billion company.declares bankruptcy.

However, this justification seems to contradict his own biography. Samuel Bankman-Fried is the son of two lawyers at Stanford University (one of the most expensive in the United States) and a graduate of the Massachusetts Institute of Technology (MIT), one of the most prestigious institutions in the United States..

At 28, SBF learned about arbitrage while studying at MIT at one of the most prestigious firms in the United States, Jane Street. His knowledge of arbitrage and cryptocurrencies led him to found Alameda Reserach in 2017 and that, according to logs Bussines Insider, for 2018, reported daily movements in excess of $14 million.

Sam Bankman-Fried managed to rank 67th among the richest men in the world. These do not seem like milestones for an “idiot” to achieve. During the Q&A on Twitter he was even addressed saying that from SBF, known to be so brilliant, he could be expected to be anything but an idiot.

Fear of being judged

SBF is no fool; it knows its reality. The U.S. Department of Justice is request Expedite charges of fraud in the FTX case. Crime that, according to penal code SBF could receive 20 to 30 years in prison.

Sam Bankman-Fried continues denying that he was complicit in fraud. Justifying that he did not know what was going on and saying he was an idiot. Stupidity is not admissible in the face of a claim of innocence, at least in the U.S. criminal code.

Although everything points to SBF being found guilty, much remains to be seen. Taking into account all the network of political influences that the ex-CEO created and that served for the rise of FTX. And that, for now, keeps him out of jail.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect those of CryptoNews.

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