Sam Bankman-Fried (SBF), the platform’s creator, has started on a media tour to explain what went wrong after the collapse of the FTX cryptocurrency exchange. However, Bankman-Fried has been cautioned about the strategy.
Bloomberg reported on December 2 that Ira Sorkin, the attorney who represented Bernie Madoff, the perpetrator of the biggest individual Ponzi scheme, had encouraged Bankman-Fried to silent’ while the investigation into the collapse proceeds.
According to the attorney, Bankman-media Fried’s tour will have little influence on the public’s perception of his suspected participation in the FTX scandal.
Sorkin further suggested that Bankman-Fried may be acting against the advice of his attorneys. As stated by Sorkin:
“Clients often assume they are more intelligent than their attorneys. This man is 30 years old, yet he is not more intelligent than his attorneys. They should be instructing him to quiet speaking every five minutes, but customers don’t always listen.”
In his first-ever audio interview, Bankman-Fried admitted that his legal team counselled him from describing what transpired before the collapse on Twitter.
In fact, throughout the media tours, Bankman-Fried has maintained his innocence, denying any culpability and claiming that he was caught off guard by the fall.
In addition to media tours, the SBF has been active on Twitter Spaces. In a recent appearance, for instance, SBF was asked to clarify his original request for $4 billion to assist the exchange to avoid bankruptcy, to which he provided a cryptic response.
SBF continues to be accused of embezzling client monies, with a portion of the market believing he operated a Ponzi scheme.
According to Finbold, former Securities and Exchange Commission (SEC) enforcement employee John Reed said that the FTX collapse was worse than Bernie Madoff’s pyramid scam. The author of the personal finance book “Rich Dad, Poor Dad,” Robert Kiyosaki, similarly compared the FTX collapse to the Madoff Ponzi scheme.
Notably, Bankman-Fried and former FTX promoters are facing an $11 billion consumer class action lawsuit. The exchange is accused of allegedly breaching yield-bearing cryptocurrency accounts affiliated with it.
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