Sam Bankman-Fried, founder and former CEO of the now-defunct cryptocurrency change FTX, tagged the choice at hand over the agency to a brand new chief throughout the chapter saga his “single greatest mistake.” In keeping with the previous crypto government, this transfer deterred him from saving the corporate from collapsing on the final minute.
‘I Might Have Saved FTX From Chapter’ – SBF
In a current interview with non-profit American journal Mom Jones, Bankman-Fried shared insights into the times earlier than and after the collapse of the $32-billion FTX change. In keeping with the previous government, handing over the corporate to the present CEO John J. Ray III was his “single greatest mistake by far.”
SBF claimed within the interview that, minutes after placing pen to paper, he acquired a name a few potential exterior funding that might have saved the FTX change from the Chapter 11 debacle. Nevertheless, it was too late to revoke his signature on the change to a brand new administration when the provide got here in, Bankman-Fried added.
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In keeping with the interview, SBF and Ray had been invited to the Congress by Rep. Maxine Waters (D-Calif.), then chair of the Home Monetary Providers Committee, to testify in December 2022. Whereas getting ready his testimony for the listening to, the previous FTX CEO acquired calls about his imminent arrest by the Bahamian police.
Bankman-Fried was subsequently extradited to the US in January 2023, the place he confronted felony fees associated to buyer funds misappropriation (about $8.9 billion) and collapse of FTX change. Now, the previous FTX chief is at the moment serving a 25-year jail sentence, having been discovered responsible of seven felony fees.
Sullivan & Cromwell’s Function In New CEO Appointment
The interview revealed that main regulation agency Sullivan & Cromwell (S&C) had, via legal professional Andrew Dietderich, proposed Ray’s rent as chief restructuring officer in case of chapter proceedings to Bankman-Fried. SBF talked about that “extraordinarily giant strain” got here from S&C and former employees members who had been then working for FTX at hand over to a brand new administration.
Apparently, Ray filed for chapter and employed Sullivan & Cromwell to supervise the method after he took management of the corporate. This transfer raised battle of curiosity considerations, as many believed that the regulation agency had allegedly performed a task in FTX’s mismanagement and eventual collapse via its illustration in previous authorized points.
In June 2024, S&C declared $171.8 million in earnings from authorized charges from the chapter proceedings. In the meantime, the FTX property began repaying collectors in 2025, with a complete of $7.8 billion distributed as of September 30.
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