- Congressman Ritchie Torres says Sam Bankman-Fried is a “pathological liar.”
- The disgraced founder “misled the general public” when he claimed FTX had sufficient property to cowl its liabilities, based on Torres.
- The scathing feedback come two days after the disgraced founder was arrested within the Bahamas.
Congressman Ritchie Torres described Sam Bankman-Fried as a “pathological liar” after mishandling billions in buyer funds. The disgraced founder “misled the general public” when he claimed that FTX had sufficient property to cowl its liabilities, Torres mentioned.
“There’s proof to recommend this a lot,” Torres, a member of the Home Monetary Companies Committee, mentioned in a Coindesk TV interview. “He lied as a result of at no level after the collapse and even earlier than then did FTX have adequate liquidity to redeem all the client deposits.”
The trade filed for chapter safety final month after dropping $8 billion of buyer deposits. As soon as a Coindesk report revealed that FTX’s native FTT token was getting used to prop up Bankman-Fried’s quant buying and selling agency Alameda Analysis, the previous billionaire took to Twitter to appease insolvency considerations.
Torres says that Bankman-Fried has continued to make “contradictory statements.”
“FTX is ok. Belongings are effective,” Bankman-Fried mentioned in a now-deleted Nov. 7 tweet. “It is closely regulated, even when that slows us down. We’ve GAAP audits, with > $1b extra money. We’ve an extended historical past of safeguarding consumer property, and that continues to be true immediately.”
A slew of studies have since revealed that Bankman-Fried knowingly used buyer deposits to make dangerous bets through Alameda and even reportedlyy had a secret group chat which FTX insiders known as “Wire Fraud.” The previous Jane Road dealer and MIT graduate has chalked up the troubles to accounting errors, stating that he did not deliberately commit fraud or misuse property.
Bankman-Fried was arrested within the Bahamas on Monday evening on quite a few fees.
“We allege that Sam Bankman-Fried constructed a home of playing cards on a basis of deception whereas telling traders that it was one of many most secure buildings in crypto,” Securities and Trade Fee Chairman Gary Gensler mentioned in a Tuesday assertion.
Congressman Torres acquired $2,900 in “unsolicited donations” from Bankman-Fried, certainly one of quite a few lawmakers to see contributions from the exec. The New York democrat says that the cash will go to a neighborhood charity.
“My ties to him are minimal,” Torres mentioned of Bankman-Fried.
