FTX bankruptcy is ‘somebody running a company that’s just dumb-as-f___ing greedy,’ says Mark Cuban

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Billionaire Dallas Maverick owner Mark Cuban recently offered his perspective on the implosion of crypto platform FTX late this week.

“That’s someone who runs a business that’s as stupid as damn greedy.”


— Mark Cuban

Speaking Friday at a conference in Washington, DC hosted by Sports Business Journal, Cuban shared the view that greed was what caused the demise of one-time crypto treasure Sam Bankman-Fried, whose firm FTX Group had just filed for Chapter 11. bankruptcy.

“So what does Sam Bankman do? [Fried] do, he’s just-“give me more, give me more, give me more.” So I’m going to borrow money, lend it to an affiliate company, and I hope and pretend to myself that the FTT tokens that are on my balance sheet will hold their value.”

Checking out: Mark Cuban Says Buying Metaverse Real Estate Is ‘The Dumbest Shit Ever’

The collapse of FTX marks a stunning sea change for a company, once valued at $26 billion, whose founder, Bankman-Fried, was seen by many in the crypto industry as a venerable actor in the Wild West of digital exchanges. .

On Thursday, the 30-year-old entrepreneur tweeted, “I did it and should have done it better,” referring to the collapse of his exchange.

Controversial FTX, short of billions of dollars, sought bankruptcy protection after the exchange experienced the crypto equivalent of a bank run. FTX, an affiliated hedge fund Alameda Research, and dozens of other related companies also filed for bankruptcy in Delaware Friday morning. With a fortune of nearly $16 billion recently, Sam Bankman Fried’s net worth had all but evaporated in the wake of the FTX implosion, according to the Bloomberg Billionaires Index.

The price of FTX’s native token FTT has fallen about 88.8% to about $2.74 in the past seven days, according to data from CoinMarketCap.

The US Department of Justice and the Securities and Exchange Commission are investigating the crypto exchange to determine whether any criminal activity or securities crime has been committed.

Regulators are investigating whether FTX has reportedly used customer deposits to fund bets at Alameda Research, a no-no in traditional markets.

Cuban, who is one of the stars of the investment show “Shark Tank” and owner of the NBA’s Dallas Mavericks, is a major investor in crypto and blockchain-related platforms. According to a CNBC report, he has said that 80% of his investments that are not on Shark Tank are cryptocentric.

To see: Tom Brady, Steph Curry and Kevin O’Leary will lose a lot in FTX bankruptcy

Cuban, for his part, is part of a class-action lawsuit accused of misleading investors into signing up for accounts with crypto platform Voyager Digital, which filed for bankruptcy in July. The lawsuit alleges that Cuban praised its support for Voyager, referring to it as “as close to risk-free as you’re going to get in the crypto universe.”

Cuban mentioned Voyager in his Friday interview. Representatives of the billionaire investor did not immediately respond to a request for comment.

The Mavericks Owner went to Twitter on Saturday to say the crypto implosions “have been banking explosions. Lending to the wrong entity, wrong collateral valuations, arrogant arbs, followed by depositor runs.”

Cuba’s net worth is $4.6 billion, according to Forbes.


The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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