An Analysis of Sam Bankman-Probation Fried’s Status by Mike Novogratz: The head of Galaxy Digital was taken aback when he spotted the FTX CEO out and about in Nassau, Bahamas, on his own.
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Novogratz claims investors in the exchange did not agree to lend money to him personally, labelling FTX’s handling of user cash as “fraud.” In the wake of FTX’s liquidity concerns making headlines in early November, Galaxy Digital disclosed that it has exposure to the cryptocurrency exchange.
The company reported at the time that its exposure to the unstable exchange was roughly $76.8 million. The report did note that roughly $47.5 million of the vulnerable funds were in the process of being withdrawn.
Scrambling All Over The Bahamas
Novogratz expressed his surprise at finding SBF roaming free in the Bahamas. On Wednesday, Galaxy’s CEO claimed to CNBC that the company had engaged in illicit activities with user funds. Novogratz saw parallels between the SBF incident and a theft he saw in his own building. The police, he added, tracked them down and detained them in under three days, while SBF is still at large.
There’s no doubt that SBF engaged in some questionable activities with our coinage, and now he’s on the lam in the Bahamas. It was not part of the contract to lend your cash to his family office if you deposited them on his exchange. We call that dishonesty.
Novogratz, who announced Galaxy’s third-quarter results, noted that the cryptocurrency market is still being buffeted by macroeconomic factors. But he assured them that they are planning ahead for institutional crypto adoption.
Source: Google Trend