Sam Bankman-Fried’s days of freedom are numbered Says the CEO of Galaxy Digital

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Last Updated on November 24, 2022 by Bitfinsider

In response to the new CEO of FTX, John Ray III, saying that Sam Bankman-Fried handled the company like a personal thiefdom in an interview on 23 November 2022, Mike Novogratz, the CEO of Galaxy Digital said, “I think his day will come.”

Novogratz began by drawing a parallel between the SBF predicament and a theft incident he saw in his residence. He claimed that within three days, the police located them and detained the offenders. Therefore, the SBF’s days of freedom are limited.

Mike Novogratz, like many other cryptocurrency investors and aficionados, has every right to be incensed at FTX and Sam Bankman-Fried. When the entire corporate empire collapsed, Novogratz had previously stated that his company didn’t anticipate being able to retrieve the roughly $77 million in cash and digital assets it had parked with FTX.

He said: “If you read your contract when you deposit your crypto or your dollars on his exchange, they’re your coins, and you have title to them, and lending them to his family office was not part of the deal. So, nobody who participated in that exchange signed a contract that Sam could take your coins and run a hedge fund with them. That’s fraud.”

Novogratz continued to express his disbelief at SBF’s efforts, most recently in a statement to the company’s employees, to try and explain what went wrong at FTX. Bankman-Fried makes no mention of rumors that client monies were reportedly used to purchase property when SBF obtained a $1 billion loan from Alameda elsewhere in his book.

In the interview, Novogratz added his voice to the chorus of lawmakers, cryptocurrency enthusiasts, and other concerned parties who are asking how Sam Bankman-Fried is still permitted to conduct business. “Maybe I’m not a judge or a lawyer, but I read my contract and (Bankman-Fried) certainly did things with our coins that were illegal. And he’s running around the Bahamas, giving press conferences, going on TV,” added Novogratz.

Outrage about FTX’s demise has been spreading on social media and on Twitter Inc., where many people have requested that American politicians—both Republicans and Democrats—who accepted donations from Bankman-Fried, FTX, or other FTX workers refund the money.

In advance of the U.S. midterm elections in November, Bankman-Fried reportedly gave nearly $38 million to politicians and political action committees, the majority of which went to Democratic candidates.

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