Sam Bankman-Fried, who stepped down as CEO of FTX on Friday after the business filed for Chapter 11 bankruptcy, lost his entire crypto empire in an epic collapse this week, and even Elon Musk took a moment out of his incredibly hectic week at the head of Twitter to say that he never trusted SBF. SBF.
Michael Grimes from Morgan Stanley, Musk’s banker on the Twitter purchase, informed Musk at the time that SBF was willing to offer “at least $3 billion” to assist Musk in purchasing Twitter and that SBF wanted to discuss the possibility for “social media blockchain integration.”
Bankman-Fried contacted Musk in March to indicate his interest in funding Musk’s acquisition of Twitter through their middlemen (in SBF’s instance, William MacAskill from FTX’s Future Fund philanthropic arm, which closed on Friday). When Musk’s text messages were revealed through a legal action, the story broke in September.
Does Sam genuinely have $3B liquid, Musk asked Grimes?
He’s into you… I do believe you would like him. Ultra brilliance and doer builder like your recipe. Built FTX from scratch after MIT physics, Grimes had praised Bankman-offer Fried’s to Musk in a text.
As Crypto was about to A popular account that shares internal emails from the IT industry tweeted out the exchange once more as Twitter proceeded to have a field day re-circulating recent history concerning SBF. “Accurate,” Musk retorted. He tripped my BS detector, so I didn’t think he had $3 billion.
Bankman-Fried wanted to work on creating a blockchain-based Twitter. Despite being a supporter of cryptocurrencies, Musk rejected the idea, stating Grimes matter-of-factly that “Blockchain twitter isn’t possible” and that he would only meet with SBF “so long as I don’t have to have a tedious blockchain debate.”
Grimes informed Musk that Bankman-Fried was interested in investing even without the blockchain component. Musk declined.
Everyone is naturally eager to remove themselves from the smell in light of the financial misdeeds at FTX, which used customer funds and its own FTT token to support SBF’s hedge fund Alameda. Musk gained control of Twitter on October 27.
After Changpeng “CZ” Zhao, CEO of competing exchange Binance, said his company will sell its interests in FTX’s FTT token, the next two weeks saw FTX crash and burn. Due to the collapse in the price of FTT, customers withdrew $5 billion from FTX, which lacked the liquidity to cover them. Musk undoubtedly had a better week than Bankman-Fried despite this week’s public disaster caused by Twitter’s bogus account scandal.
- When Sam Bankman-Fried approached me about investing in Twitter, he “set off my BS detector”
- Check all news and articles from the latest Business news updates.