Sam Bankman-Fried Interview: Reading the Transcript

Sorkin: How could this be?

BANKMAN-FRIED: There have been situations in the historical past of cryptocurrencies where this has occurred. Clearly, you can glance at what took place to Bitfinex a couple yrs in the past, it received hacked and then received a entire bunch of buyers in excess of the class of a few many years. There are a ton of property on hand here, even however quite a few of them are not liquid. They are well worth a ton far more than what the liabilities were being even a thirty day period back, allow by yourself a calendar year in the past. At least a month in the past, or I guess, you know, a few months in the past, there were being billions of bucks of likely funding options. You know, I will not know it is great for my stake as a FTX shareholder, but that is not the place below. And I believe that qualified prospects to more financing for clients. You’ve got certainly seen the Tron facility, which has been open up for a though on FTX, which has presented some clientele access to liquidity. I, you know, you place some of these alongside one another. I, you know, certainly have equity in the company. The place does that guide? I am not positive. And, all over again, it’s not likely to be a final decision I make at the conclude of the day. But me, but I think there is an possibility to get serious price.

Sorkin: We are likely to have to conclusion it. A few of quick other questions. One, supplied what you know about compliance, or lack thereof in this market, I assume there are a whole lot of men and women nowadays who possibly keep cryptocurrencies on exchanges in finance and in other places, and given what you know, they How need to you think and to what extent can you notify us the real truth as you know it?

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BANKMAN-FRIED: What should they consider? I think you might be asking how they must imagine about the protection of their potential assets. suitable?

Sorkin: Yes.

BANKMAN-FRIED: So glimpse, I will not know, I clearly don’t know what the hell is likely on with other exchanges. I can inform you what I consider as a client. You know, if I, if I’m a consumer in this article, it really is wanting for some thing that I want FTX to present. You know, matters like evidence of reserves are beneficial. Glance for the strictest regulatory reporting attainable. proper. You glimpse at what JFSA has in Japan, you search at what FTX US derivatives have, you know, I frequently see regulators reporting the specific problem of shopper asset balances, liabilities, allocations.

Sorkin: What about the governance portion? The governance portion — 1 point we have not talked about yet — you never have a board of administrators. You really don’t have a CFO, and that should be a pink flag for all of us, frankly.

BANKMAN-FRIED: It is really humorous that in some approaches we have as well numerous boards.

Sorkin: My goodness. Hopefully we can get him back in quick buy – thanks for pampering us. We’re almost performed with this interview. Will we carry him back again? Maintain on for a next. Can we try to get Sam again just to complete this job interview? Thank you all for currently being with us. We’ll be back with Sam Bankman-Fried, I think the instant they hook up the feed. Thank you for coming again, Sam. We’re conversing about no seats, no board, no CFO, and I believe what you’re stating below is stunning some men and women due to the fact you have too several boards.

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BANKMAN-FRIED: There is an FTX Japan board, there is an FTX US derivatives board, FTX Australia, FTX Singapore, FTX Europe. When you search at all the entities put together, we have a dozen boards. Many of these committees have regulatory functions. The question is fine in a way, positive, you have all these boards, but at the conclude of the day, when it comes down to it, who is the particular person who is accountable for the huge image or boundary or useful shopper chance management. To some extent there is a dispersion of duty. I believe there requires to be an entity or a compact team of entities, irrespective of whether it is a board of administrators, people today, or principals, who sit there and say, “I am liable for what occurs on FTX.” We audited the financials from an FTX financial viewpoint. We have the infrastructure, but from a customer possibility and financial standpoint, it truly is much a lot less infrastructure.

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