Mike Novogratz Calls Sam Bankamn-Fried Delusional, Says He Must Be Behind Bars
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In an exclusive interview with CNBC, Galaxy Digital CEO Mike Novogratz spoke about the FTX debacle and referred to Sam Bankamn-Fried’s personality as “delusional” asserting that the incident has reduced confidence in financial markets.
Earlier yesterday, SBF made his public appearance virtually and in an interview with New York Times he opened up about the whole collapse and said that he ‘screwed up.’
He also said, “I wasn’t running Alameda. I didn’t know what was going on. A lot of the things were things I learned over the last month.”
The CEO called SBF delusional and said, “It was delusional. Let’s be really clear. Sam was delusional about what happened and his culpability in it.”
He also discussed how FTX’s absence of an internal accounting division contributed to the exchange’s disorganized balance sheet and the careless error of combining the financials of FTX and Alameda.
“I think the money side of crypto, companies like ours that buy and sell and lend and do derivatives, are going to get regulated and should be. They (FTX) perpetuated a large fraud and it wasn’t just Sam. You don’t pull this off with one person. Markets are based on trust. And when you have trust broken like this, it questions everyone else. People start looking for black swans everywhere.”
Will Bitcoin Rebound?
Novogratz also spoke on the effects of the FTX saga as he continued to analyze the state of bitcoin and larger cryptocurrency markets. He believes that the negative impacts of the FTX will be reversed, and the markets for bitcoin and other cryptocurrencies will rebound.
He predicted that institutional adoption of cryptocurrencies will continue to soar, with companies that have secured their distinctive positions on the financial side of the industry moving in directions where transparency is almost a requirement.
“Digital asset is inevitable, and they will be part of our future. And that’s why you don’t see the institutions backing away. Like, Fidelity is not saying, ‘Oh my goodness, we made a mistake,’ they are doubling down at this point.”