SBF Regrets FTX Handover, Blames Missed Rescue Opportunity
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Sam Bankman-Fried, the founder and former CEO of the now-defunct cryptocurrency exchange FTX, has labeled his decision to transfer control of the company to new leadership during its bankruptcy as his “single biggest mistake.” He claims this move prevented him from securing a last-minute investment that could have averted the exchange's collapse. According to Bankman-Fried, a potential external investment offer materialized just minutes after he signed over the company to John J. Ray III, making it too late to reverse the decision.
The article highlights the sequence of events leading to FTX's downfall and SBF's subsequent legal troubles. Bankman-Fried was preparing to testify before Congress in December 2022 when he received calls about his imminent arrest by Bahamian police. He was later extradited to the U.S. in January 2023, facing charges of misappropriating approximately $8.9 billion in customer funds, which contributed significantly to FTX's demise. He was ultimately convicted on seven felony charges and is currently serving a 25-year prison sentence.
The interview also sheds light on the role of law firm Sullivan & Cromwell (S&C). SBF stated that S&C, through attorney Andrew Dietderich, had proposed Ray's hiring as chief restructuring officer. Bankman-Fried reported feeling “extremely large pressure” from S&C and former FTX staff to hand over management. Following his appointment, Ray filed for bankruptcy and controversially hired S&C to oversee the process, raising conflict of interest concerns given the firm's prior association with FTX. S&C has since declared $171.8 million in legal fees from the proceedings, while the FTX estate began repaying creditors in 2025, distributing $7.8 billion as of September 30.
(Source: https://bitcoinist.com/ftx-sam-bankman-fried-firm-over-to-new-ceo-mistake/)
