Categories: TechWorld

FTX spox O’Leary says he called SBF and demanded, ‘Where is the money, Sam?’

FTX spokesperson Kevin O’Leary testified before the Senate Banking Committee on Wednesday, discussing the collapse of the cryptocurrency trading platform, and he recalled a conversation he had with former CEO and co-founder Sam Bankman-Fried right after things went south.

O’Leary recalled that after his company assets were rendered worthless, he had a hard time getting any answers, so he called Bankman-Fried himself.

Advertisement

“After my accounts were stripped of all of their assets and all of the accounting and trade information, I couldn’t get answers from any of the executives in the firm, so I simply called Sam Bankman-Fried and said, ‘Where is the money, Sam?’” O’Leary told the committee in response to a question regarding why he believes the company failed.

He said Bankman-Fried’s response began with him claiming he did not know because he no longer had access to the company servers.

Advertisement

 

“I said, okay, let’s step back. This is a simple case in my mind of where did the money go?” O’Leary continued. “And I said, ‘Sam, walk me back 24 months. Tell me the use proceeds of the assets of your company. Where did you spend it?’”

Advertisement

 

O’Leary then relayed Bankman-Fried’s answer, which was that during the previous 24 months, he had paid between $2 billion and $3 billion to competitor Binance to repurchase FTX shares that Binance or its CEO Changpeng “CZ” Zhao had acquired. O’Leary explained that according to Bankman-Fried, Binance refused to comply with requests from different jurisdictions in order to get licensed, so he ended up buying back the shares at a premium.

Advertisement

 

O’Leary then directly addressed the initial question posed to him about what happened to FTX.

Advertisement

“In my view, my personal opinion, these two behemoths that own the unregulated market together and grow these incredible businesses in terms of growth were at war with each other and one put the other out of business intentionally. Now, maybe there’s nothing wrong with that. Maybe there’s nothing wrong with love and war, but Binance is a massive, unregulated global monopoly now,” he said.

“Now, lots of other reasons, I’m sure, but that’s my personal opinion,” he added.

Advertisement

 

FTX declared bankruptcy on November 11. Since then, Bankman-Fried has been hit with charges from the SEC, CFTC, and federal prosecutors in the Southern District of New York based on allegations of conspiracy and fraud. Among the allegations were claims that Bankman-Fried took investor funds, transferred them to his crypto hedge fund Alameda Research, and used them for personal purposes, including political contributions.

Advertisement

Bankman-Fried was arrested in the Bahamas the evening before he was scheduled to testify before a House committee.

Advertisement
Sola Adeyemo

Recent Posts

My husband assaulted me, ruined my career – Olajumoke Onibread

Former bread seller turned model, Olajumoke Orisaguna, popularly known as Olajumoke Onibread, has opened up…

13 minutes ago

“I did not punch Akpabio” – Senator Bamidele speaks on alleged fight with Senate President

Senate Majority Leader, Opeyemi Bamidele has denies reports that he was involved in a fight…

28 minutes ago

Speaker Obasa Clarifies Negative Perceptions As Sanwo-Olu Presents 2025 Budget

– says lawmakers united to meet yearnings of Lagosians – accuses detractors of peddling news…

33 minutes ago

2027: “No vacancy for non-indigenes in Alausa” – Lagos youths tell Seyi Tinubu

The Coalition of Lagos Indigenous Youths has rejected the recent endorsement of Mr Seyi Tinubu,…

45 minutes ago

Biafra Activist Simon Ekpa Arrested in Finland Over Terrorism

Biafra activist Simon Ekpa has been arrested in Finland over terrorism. Newsone Nigeria reports that the self-acclaimed leader of…

48 minutes ago

‘Don’t Waste Your Time Again In 2027’: Bode George Begs Atiku (Video)

A former Deputy National Chairman of the Peoples Democratic Party, Chief Bode George, has advised…

51 minutes ago