FTX’s ex-CEO Sam Bankman-Fried confesses failure of oversight, says “unknowingly commingled funds”

• FTX’s founder claimed that he was unaware of Alameda’s position, which led to the subsequent collapse.
• Sam Bankman-Fried had earlier blamed FTX’s downfall on “messy accounting” that emanated during the Terra-Luna collapse.
• The crypto market noted a rise in capitalization, recovering $31 billion to mark the highest single-day gain in three weeks.

FTX’s former Chief Executive Officer (CEO), Sam Bankman-Fried, continues to spew previously unknown details about the exchange’s collapse. The most recent reveal once again observed Bankman-Fried blaming other factors for the downfall but also surprisingly owning his faults.

FTX’s Sam Bankman-Fried acknowledges his error

FTX’s founder recently engaged in the first public event since his exchange’s collapse. Speaking at the New York Times Dealbook event, Sam Bankman-Fried accepted his failure as he said that he unknowingly commingled funds. As per Sam Bankman-Fried, he and the company did not know just how big Alameda’s position was.

“I wasn’t running Alameda, I didn’t know exactly what [was] going on. I didn’t know the size of their position.

Sam Bankman-Fried went on to state that the failure of oversight and in appointing someone else to be in charge of Alameda is also his own fault. 

This is the second time that Sam Bankman-Fried has given a reason for the collapse in the same month. As reported by FXStreet, earlier in November, he blamed the downfall of FTX and its sister company Alameda on “messy accounting”. As per the ex-CEO, the fall of Terra’s ecosystem led to the disturbances in Alameda Research, triggering the subsequent line of problems that continue to impact the crypto market.

Crypto market cap rises by 4% as Bitcoin price breaches $17,000

Amidst fears of an FTX-induced contagion, the crypto market capitalization recovered more than $31.3 billion. This marked the highest single-day increase for the market in over three weeks. Inching closer to the $1 trillion mark, the combined value of all cryptocurrencies is around $820 billion.

Total crypto market capitalization

At the same time, Bitcoin price also shot up to bring the king coin above $17,000. Currently trading at $17,173, the digital asset does have a slight chance of a run-up toward $18,000. However, for the same, the investors need to sustain the current buying pressure to achieve the suggested rise in price. 

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