FTX bankruptcy is ‘somebody running a company that’s just dumb-as-f___ing 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.”

— Marc Cuban

Cuban, speaking Friday at a conference in Washington, DC organized by Sports Business Journalshared the view that greed was behind the downfall of former crypto darling Sam Bankman-Fried, whose company FTX Group just filed a claim chapter 11 bankruptcy.

“So what is Sam Bankman [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.

Check: Mark Cuban Says Buying Real Estate In The Metaverse Is “The Dumbest Shit Ever”

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.

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

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 practically evaporated following the FTX implosion, according to the Bloomberg Billionaires Index.

According CoinMarketCap Data.

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 its investments who are not on Shark Tank are crypto-centric.

See: Tom Brady, Steph Curry and Kevin O’Leary set to lose big from FTX bankruptcy filing

For his part, Cuban is part of a class action accused deceptive investors to open accounts with crypto platform Voyager Digital, which filed for bankruptcy in July. The lawsuit alleges that Cuban touted his support for Voyager and made reference to it.as close to risk-free as possible in the crypto universe.”

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 the crypto implosions “have been bank blasts. Lending to the wrong entity, collateral valuation errors, arrogant arrogance, followed by depositor rushes. »

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

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