Galaxy Digital CEO Mike Novogratz, not holding back on what he believes SBF deserves, stated some of his actions with FTX were illegal and fraudulent and his day in jail will come.
“Liars lie and will continue to lie,” Mike Novogratz slams.
In an interview with CNBC’s Squawk Box on Wednesday, 23rd of November, 2022, Mike Novogratz, the CEO of Galaxy Digital, an investment firm in New York, when asked his reaction to the new CEO of FTX, John Ray III, opinion that Sam Bankman-Fried treated the company like a personal thiefdom, stated, “I think his day will come.”
Novogratz started by comparing the SBF situation with a theft case he witnessed in his apartment. He said the police found them within three days and arrested the culprits. And so SBF days of freedom are numbered.
Like many crypto investors and enthusiasts, Mike Novogratz has every reason to be furious with FTX and Sam Bankman-Fried. Novogratz had earlier addressed that his firm didn’t expect to recover some $77 million in cash and digital assets it had parked with FTX when the whole enterprise empire crumbled.
Slightly irritated, Mike stated, “If you read your contract when you deposit your crypto or your dollars on his exchange, they’re your coins, and you have title to them, and lending them to his family office was not part of the deal. So, nobody who participated in that exchange signed a contract that Sam could take your coins and run a hedge fund with them. That’s fraud.”
He added, “I’m shocked that his father, a lawyer, is letting him talk or that anybody is listening to him. Liars lie and will continue to lie,”
Novogratz continued how incredulous SBF’s efforts to try and explain what went wrong at FTX, most recently in a statement to the firm’s employees, were. Nowhere does Bankman-Fried address reports that customer funds were allegedly used to buy real estate while SBF took a $1 billion loan from Alameda.
Bankman-Fried’s continued million-dollar lifestyle sparks irritation
Novogratz, in the interview, joined the growing chorus of politicians, cryptocurrency enthusiasts, and others concerned about the situation to question how Sam Bankman-Fried is still free to go about his business.
Novogratz said, “Maybe I’m not a judge or a lawyer, but I read my contract and (Bankman-Fried) certainly did things with our coins that were illegal. And he’s running around the Bahamas, giving press conferences, going on TV.”
Since FTX’s collapse, outrage has been percolating on social media and on Twitter Inc., where many have demanded that politicians in the U.S.— both Republicans and Democrats — who took donations from Bankman-Fried, FTX, or other FTX employees return the money.
According to media reports, Bankman-Fried personally donated roughly $38 million to politicians and political action committees ahead of the U.S. midterm elections in November, with much of this money going to Democratic candidates.