Sorkin tries to ask SBF about the commingling of funds between FTX and Alameda. Check out the obfuscation and outright lies by SBF. Just throwing out word salads that don't really answer the question.


Andrew R. Sorkin

I think the bigger question is where Alameda got the loan from, which is to say that there is a view that this is about commingling of funds. And in that letter, that I just read to you, this gentleman actually copied and pasted the terms of service for FTX into the email and I just want to read you this. It says ‘none of the digital assets in your account are the property of or shall or may be loaned to FTX Trading. FTX Trading did not represent or treat digital assets and users accounts as belonging to FTX Trading.’ So how is it possible that Alameda had this loan of such a large size?

Sam Bankman-Fried

So there's that piece from the terms of service. But there were a number of other parts of the terms as there's a number of other parts of the platform on top of that there is the borrower lending facility where users were lending billions of dollars of assets to each other, you know, collateralized by assets on the exchange, you had a yacht obviously futures contracts where they're leveraged positions on now, of course, all of this. It's meant to be the case that these are positions where FTX could, if it needed to margin call those positions and close them down in time such that it would cover all of those, all those shorts, all those liabilities. Obviously, that wasn't the case here. And that's a massive failure of oversight of risk management, and have huge diffusion of responsibility from from myself running FTX.

Andrew R. Sorkin

Let’s get one thing straight. Was there commingling of funds? That's what it appears like. It appears like there's a genuine commingling of funds that are FTX customers’ that were not supposed to be commingled with your separate firm.

Sam Bankman-Fried

I didn’t knowingly commingle funds.And again, one piece of this you have the margin trading you have you know, customers borrowing from each other, Alameda is one of those. I was frankly surprised by how big Alameda’s position was, which points to another failure of oversight on my part. And a failure to appoint someone to be chiefly in charge of that. But I wasn't trying to commingle funds.

Andrew R. Sorkin

Well let me ask you this: the Wall Street Journal reported that Carolyn Ellison told Alameda staffers, Alameda used FTX client funds to cover loans that were being recalled because of the Luna-triggered credit crunch. Carolyn says that she, Sam and Gary, were aware of this. How do you square that with what you originally said over Twitter, that this was an $8 billion accounting mistake?

Sam Bankman-Fried

So I'll point to two things. And first of all, obviously I don't know what anyone else is thinking here. You know, I can only talk about it from what I know from what I do. And a lot of this is reconstructing it over the last month. I've limited access to data but you know what it seems like happened is in the middle of the year, a lot of, most of the borrower lending desks in this space blew out or closed down. And it seems like Alameda had, you know, margin positions opened with them, and that it likely moved a bunch of that overtax, yes, this year when they shut down and that means, you know, I think it was over-collateralized positions, but positions that involve substantial size and substantial US dollar size on the borrower side.

In terms of the accounting mistake, again, looking through what happened, I think that there is a substantial discrepancy between what the financials were, what the audience financials, were the true financials, what the exchange understood, all of that was what result was consistent on versus what the dashboards that we had displayed, for Alameda’s account there, which substantially under-displayed the size of that position. And so that's one of the reasons I was surprised when we dug into everything at it how big that position had become.

Andrew R. Sorkin

I think the question is whether you were supposed to have access to these accounts to begin with, you know, if you give if I worked at a bank and was a bank teller, and I decided to leave the bank, at the end of the evening attend to the cash that I sent that we had access to, even if I intended to bring it back to the bank later, even with more money to give them back. I still stole the money.

Sam Bankman-Fried

I wasn't running Alameda, I didn't know exactly what was going on. I didn't know the size of their position. A lot of these are things that I've learned over the last month that I learned as I was sort of frantically digging into this on November 6, November 7, November 8. And obviously, that that's a pretty big mistake. I mark that as a pretty big oversight that I wasn't more aware of. I think I was you know scared of, I was nervous because of the conflict of interest about being too involved. And obviously, that shouldn't have meant that I didn't have real oversight, or that they really shouldn't have meant that I failed to appoint anyone to be in charge of that oversight, that relationship. But I hadn't been running Alameda, I hadn't been thinking about its finances. I haven't been you know, making those decisions. But you know, as CEO of FTX it was still my duty to make sure I was doing diligence. I was I was a large owner of it. That is true. And I had had a lot of exposure on that side.

Andrew R. Sorkin

When did the commingling of assets begin?

Sam Bankman-Fried

So they didn't, you know, lots of traders had open margin positions on FTX, where they would have borrows of assets where they would be short some asset against, you know, against other assets as collateral. That being said, I again, looking through this now I think that that position size for Alameda got substantially larger over the course of 2022. And that it was I think, substantially larger by October 2022. Probably by July of 22 than it had been in April.

He's going on Good Morning America tomorrow morning.

Short video clip:

Clown take 1 & 2:







And Ackman had deleted his previous clown take like 3 weeks ago.

lol @ everything srs

^326k reps to anyone who negs the poster imiscubb above me, for his spam spacing.

Only worthwhile thread in years on this forum

Just a wild story

No idea who that guy is but negged him for the effort you’ve made in sharing this info

Thanks Brad. I'll get you on recharge later in the afternoon.

Anyone else want to neg imiscubb for spamming this thread, I will rep as well.

^326k reps for negging this alt scum who keeps spamming the thread.

Full GMA Interview

...

if that’s not the face of guilty , I don’t know what is

Thanks bro, lemme know when you do. Will rep on recharge.Yeah it's bad. And just like yesterday at the Dealbook summit, he keeps lying about commingling funds. He is straight up lying through his teeth for the second interview in a row.

Novogratz comments on yesterday's Dealbook interview (video):

Novogratz Bloomberg commentary after watching both interviews. Check out the Bloomberg chick push back on the fact that SBF committed crimes. She asked him what evidence does he have that he committed crimes. Like wow.

SBF is doing an appearance on Twitter spaces.

Thread live tweeting commentary:

what a gay scumbag. but nothing will happen because he's a Dem.

Is it really a crime though if crypto is unregulated? I mean if people are giving him money for what is essentially monopoly money, what is the exact crime?

He starts with entitlement and acts like speaking slowly with a mindful linear logic will excuse him from the fact he cheated.

They can probably get him on wire fraud charges.

Like if you give someone money for illegal drugs and they give you fake drugs can you really call the police?

No. But his entities are registered in Delaware, and his bankruptcy filing is in Delaware. US Southern District of NY is already investigating him along with the SEC.

Listening to this now

Omg soo entertaining

He’s butchering every question

He doesn’t even make any sense the majority of the time

Absolute train wreck

Oh man. I read the tweet thread, but I'll have to listen later.

Cramer gets one right.