Disgraced FTX founder Sam Bankman-Fried ignored pleas from company attorneys and advisers urging him to file for bankruptcy “for days” before the cryptocurrency platform imploded, in response to a report Tuesday.
FTX general counsel Ryne Miller was one in every of several individuals who begged Bankman-Fried and other executives to relinquish their control of the corporate, the Latest York Times reported, citing internal emails and text messages.
The mood grew so dire that the FTX attorneys purportedly tried to contact Bankman-Fried’s father, Stanford Law professor Joseph Bankman, to see if he would intervene and speak to his son.
Within the early morning hours of Nov. 11, the day FTX filed for bankruptcy, Miller was still begging Bankman-Fried to sign the crucial paperwork.
“Please are you able to sign the document,” Miller purportedly wrote in a message at 2:29 a.m.
The messages highlighted the chaos inside FTX because it fell from industry leader to pariah in a matter of hours. Bankman-Fried faces intense legal and regulatory scrutiny over FTX’s collapse and his own actions while allegedly pillaging company resources for non-business spending.
FTX general counsel Ryne Miller purportedly begged Sam Bankman-Fried to file for bankruptcy.LinkedIn / Ryne Miller
Prior to the filing, Bankman-Fried continued to insist behind the scenes that he could steer the platform out of its inevitable financial disaster – even after rival platform Binance backed out of a deal to purchase FTX resulting from concerns about its funds.
An FTX attorney first urged the corporate’s top brass to appoint John Ray III to oversee its bankruptcy on Nov. 9, in response to the report. Ray, who’s currently serving as FTX CEO, is best known for steering disgraced energy firm Enron through its bankruptcy.
Hours before the bankruptcy filing occurred, Bankman-Fried was still telling FTX staff that he was pursuing outside funding to maintain the platform afloat.
On Nov. 10 – sooner or later before the bankruptcy filing – Miller reportedly emailed Bankman-Fried and other top FTX officials urging them to right away pause activity on the cryptocurrency platform. Within the message, Miller lamented that the “founding team shouldn’t be currently in a cooperative posture.”
Sam Bankman-Fried faces major legal and regulatory scrutiny. Sipa USA via AP
When FTX officials made a mistake within the bankruptcy filing by unintentionally listing entities that weren’t under FTX Group’s control, Miller purportedly blamed the error on Bankman-Fried and his close associates.
“We had no cooperation of the founders in preparing this week,” Miller said. “It was unlucky.”
Miller was also answerable for FTX’s move to wash executive bios from the corporate’s “about” page.
As The Post has reported, bios for Bankman-Fried, fellow co-founder Gary Wang, former chief regulatory officer Dan Friedberg and others abruptly disappeared in recent days after the corporate went bankrupt.
“Who can go to FTX.com and FTX US and take away the images and bios of the people under ‘about,’” Miller said in a gaggle message to other executives, in response to the report.
Sam Bankman-Fried has since said that he regrets filing for bankruptcy. Sipa USA via AP
Bankman-Fried declined to comment on the text messages he exchanged with other FTX executives prior to the bankruptcy, the Latest York Times reported.
Nevertheless, the previous executive claimed that he had identified “quite a few parties” who were thinking about providing a money infusion even after bankruptcy proceedings were underway.
Miller and FTX reportedly declined to comment on the situation.
FTX formally filed for Chapter 11 bankruptcy on Nov. 11 as the corporate’s financial situation became untenable. Bankman-Fried broke the news with an apology via tweet.
“I’m really sorry, again, that we ended up here.” Bankman-Fried said. “Hopefully things can discover a option to recuperate. Hopefully this could bring some amount of transparency, trust, and governance to them. Ultimately hopefully it will probably be higher for purchasers.”
Bankman-Fried reversed course just just a few days later, telling a Vox reporter that he regretted the bankruptcy and describing the move as his “biggest single f—kup.”
Meanwhile, Ray and other members of FTX’s current team of stewards excoriated Bankman-Fried in court filings, accusing him of running the corporate as if it were a “personal fiefdom” with none corporate governance standards in place.