Elon Musk, CEO of Tesla (NASDAQ: TSLA), is the most recent prominent figure to remark on the FTX crypto exchange problem and its troubled founder Sam Bankman-Fried.
Musk expressed his opinion on Bankman-Fried, the individual at the core of the attempted fraud of client funds, in this sentence.
CoinDesk reported on November 12 that Musk said in a Twitter Space to over 60,000 listeners that he had never heard of Bankman-Fried before speaking with him, but that something did not seem right.
The focus of Musk’s conversations with Bankman-Fried was the Twitter (NYSE: TWTR) takeover transaction in which the FTX founder had indicated interest.
“Honestly, I had never heard of him….”Then, however, a large number of individuals informed me that he wanted to spend enormous sums of money in the Twitter purchase. And we spoke for around thirty minutes. And I am aware that my BS sensor was redlining. “
Musk stated on Twitter on November 11 that he remained doubtful of Bankman-ability Fried’s to close the transaction, despite the praise of Bankman-Fried by prominent industry figures.
“After that, it hit me: “Man, everybody’s talking about him like he’s walking on water and has a million bucks. That includes big investment banks. And I did not have that impression. <…> There is something wrong with this guy, he lacks capital, and he will not follow through. “That was my estimate,” Musk said.
Notably, the collapse of FTX has sent shockwaves across the cryptocurrency market, resulting in large price corrections for the majority of digital assets.
With the possibility of a further downturn, Musk has emphasized that the cryptocurrency market is here to stay but advised investors to hold their assets in cold storage rather than on exchanges.
The market correction was initiated when the native token of the FTX exchange, FTT, fell by more than 80%, wiping away around $2.5 billion in market value.
The issue started to deteriorate when it was revealed that Bankman-business Fried’s empire consisted of two significant entities: the FTX cryptocurrency exchange and his trading company Alameda Research. The financial data of Alameda verified the relationship between the two organizations, which mostly involve the FTT token. In the meanwhile, officials have already initiated an investigation into the collapse of FTX.
Also Read: Plaid Stops FTX.US Access To Customer Data After “Troubling” Reports
Wallets