Elon Musk Comments on What Truly Made FTX Fail

FTX

FTX owes its creditors more than $3 billion

Elon MuskThe Tesla CEO responded to a tweet from the WSJ that blamed founder Sam Bankman for the collapse of FTX. Fried’s supporters are losing faith in him.

No doubt, they lost confidence in SBF given the circumstances of the FTX collapse, with at least $1 billion of customer funds disappearing from the collapsed crypto exchange, according to a Reuters report. But the Tesla CEO believes that was not the reason it failed.

Ripple CTO David Schwartz and MicroStrategy President Michael Saylor joined the conversation. According to Ripple’s CTO, FTX was a ticking time bomb that went off just a little bit faster than it could have. Michael Saylor believes that the reason FTX failed was the same reason customers disappeared from the fund exchange.

Crypto market participants have accused Bankman-Fried of fraud and flagrant mismanagement of funds. His exchange reportedly utilized customer funds to execute risky trades.

There Was a “Black Hole” in FTX’s Finances

The shocking collapse of Sam Bankman-Fried’s FTX empire revealed a black hole in the company’s financial reporting and accounting.

According to a recent declaration made over the weekend, troubled cryptocurrency exchange FTX owes its creditors more than $3 billion. Sam Bankman-Fried, the disgraced FTX founder, resigned as CEO earlier this month as the business sought Chapter 11 bankruptcy protection.

Newly appointed FTX CEO John Ray III bluntly stated that in his 40 years of legal and restructuring experience, he had never seen such a complete failure of corporate controls and such a complete absence of reliable financial information as in the FTX landscape.

The new CEO declared on Saturday that the bankrupt cryptocurrency exchange is looking to sell or restructure its vast global empire, even as Bahamian regulators and FTX argue in court documents.

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