Disgraced FTX founder Sam Bankman-Fried plans to admit to being “f-ked” during his swearing-in on Capitol Hill on Tuesday, according to written statements discussed during his arrest in the Bahamas on Monday night.
Leaked drafts of Bankman-Fried’s planned testimony offer a glimpse into Bankman-Fried’s thinking before the SEC charged him with siphoning off $1.8 billion from FTX investors.
“I would like to begin by formally stating under oath: I agree,” Bankman-Fried wrote. According to Forbes.
Bankman-Fried was arrested hours before testifying remotely before the House Financial Services Committee. The feds are expected to indict the 30-year-old cryptocurrency executive on Tuesday on charges of wire fraud, wire fraud, securities fraud, securities fraud and money laundering.
Bankman-Fried also said in a written statement that his personal fortune, which he claimed was worth $20 billion last year, had evaporated since the FTX bankruptcy.
“Last I saw, I believe I had about $100,000 in my bank account,” Bankman-Fried wrote. “I don’t know for sure because I have been denied access to my personal passwords, data, documents and accounts.”
FTX’s new CEO, John Ray, is set to testify before a key House panel on Tuesday. Ray, a restructuring expert who led the disgraced energy firm Enron through a high-profile bankruptcy, described FTX’s internal management as the worst he had encountered in his career.
In her written statement, Bankman-Fried fired back at Ray, saying she regretted “pushing” FTX to file for Chapter 11 bankruptcy last month.
“I have reached out to Mr. Ray and the Chapter 11 team several times. Sometimes I asked for access to my information, but at other times I tried to alert them to information potentially important to their work and obligations to FTX’s creditors and clients,” the affidavit reads.
Bankman-Fried also claimed to have received a “potential multi-billion dollar financing offer” minutes after FTX signed the bankruptcy filing. The embattled FTX founder said he tried to reverse Ray’s appointment as CEO, but it was too late.
House Financial Services Committee Chairwoman Maxine Waters (D-Calif.) said she was “shocked” to hear Bankman-Fried was arrested on the eve of a scheduled appearance in the Bahamas.
“While Mr. Bankman-Fried must be held accountable, the American public deserves to hear directly from Mr. Bankman-Fried about the actions that have harmed over one million people and destroyed the hard-earned livelihood of many. Waters said in a statement. “The public looks forward to getting those answers under oath before Congress, and the timing of this arrest deprives the public of that opportunity.”
In an interview with Twitter Spaces on Monday, Bankman-Fried said she planned to testify via Zoom because she was “too busy.” He also expressed concern about the “paparazzi” if he were to return to the US.
Earlier this week, members of the Senate Banking Committee said Bankman-Fried declined to be asked to testify at a similar hearing this week. The panel had previously warned that the former billionaire could be subpoenaed if he did not voluntarily comply.