Tesla CEO Elon Musk commented on the FTX crypto exchange crisis and its troubled founder Sam Bankman-Fried. In this line, he said, Bankman-Fried is at the center of an alleged misappropriation.
Musk told over 60,000 people in his recent tweet that he had never heard of Sam Bankman-Fried before having a conversation with him, but something seemed amiss, according to CoinDesk’s report from November 12th.
To be honest, I’d never heard of him… But then I got a ton of people telling me [that] he’s got, you know, huge amounts of money that he wants to invest in the Twitter deal. And I talked to him for about half an hour. And I know my bullshit meter was redlining. It was like, this dude is bullshit – that was my impression,
Musk said.
Musk Remains Skeptical About Sam Bankman-Fried.
On November 11th, Elon added on Twitter that despite what some major players in the industry say about Bankman-Fried. Musk remains skeptical about whether or not he will come through.
Then I was like, man, everyone including major investment banks – everyone was talking about him like he’s walking on water and has a zillion dollars. And that [was] not my impression…that dude is just – there’s something wrong, and he does not have capital, and he will not come through. That was my prediction,
Musk added.
Notably, the collapse of FTX has sent major waves throughout the cryptocurrency market.
With the looming threat of future regulation, Elon Musk urged investors to transfer their funds from cryptocurrency exchanges into cold wallets.
I think there probably is a future for Bitcoin (BTC), Ethereum (ETH), and DOGE. I can’t really speak to the others. But if you’ve got one of those three in a cold wallet, and off an exchange, I think my guess is it works out well,
he said.
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The native token of the FTX exchange, FTT, eventually fell by over 80%, wiping out nearly $2.5 billion in market capitalization, which set off the market downturn.
Bankman-Fried’s intricate network of businesses first became evident when reports surfaced of him owning both the FTX crypto exchange and Alameda Research, where they primarily dealt with FTT tokens.
Meanwhile, the regulatory body has already launched an investigation into the FTX debacle.
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