FTX Bankruptcy Is ‘Somebody Running A Company That’s Just Stupid As Fucking Greedy,’ Says Mark Cuban

Billionaire Dallas Maverick owner Mark Cuban recently offered his take on the implosion of crypto platform FTX over the weekend.

“He’s someone who runs a business who’s just stupid as fuckin’ greedy.”


—Mark Cuban

Cuban, speaking Friday at a conference in Washington, D.C. hosted by Sports Business Journal, shared the view that greed was behind the downfall of former crypto darling Sam Bankman. -Fried, whose company FTX Group just filed for Chapter 11 bankruptcy.

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

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The collapse of FTX marks a stunning turnaround for a company, which was once valued at $26 billion, and whose founder, Bankman-Fried, was considered by many in the crypto industry to be a venerable player in the industry. the Wild West of digital exchanges.

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

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

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

The US Department of Justice and the Securities and Exchange Commission review the crypto exchange to determine if any criminal activity or securities offenses have occurred.

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

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

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For his part, Cuban is part of a class action lawsuit accused of tricking investors into opening accounts with crypto platform Voyager Digital, which filed for bankruptcy in July. The lawsuit alleges that Cuban touted his support for Voyager and called it “as secure as it gets in the crypto space.”

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

The owner of the Mavericks caught on Twitter Saturday to say that crypto implosions “have been bank blasts. Loans to the wrong entity, collateral valuation errors, arrogant arrogance, followed by depositor runs.

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

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