Elon Musk and other cryptocurrencies are speculating as to why Sam Bankman-Fried’s FTX failed

As Sam Bankman-Fried’s FTX continues to unravel, Elon Musk and other crypto insiders have begun speculating about the reasons behind the epic crash of the second-largest cryptocurrency derivatives exchange by trading volume.

The Wall Street Journal, which shared an article by Allysia Finley about what Bankman-Fried and former US President Donald Trump have in common, followed up on Tuesday with a tweet about why the Bankman-Fried empire is crumbling.

“FTX failed because Sam Bankman-Fried’s supporters lost faith in him. Maybe Donald Trump is finally crashing and burning,” the tweet quoted the article as saying.

However, “Chief Twit” Musk disagreed with the tweet, noting, “Yeah, umm…that’s not necessarily the reason for the failure.”

Musk did not elaborate on his comments, but it is recalled that he was able to speak with Bankman-Fried when the former FTX CEO approached him in April about his interest in helping Musk acquire Twitter.

After FTX’s spectacular collapse, Musk said Bankman-Fried turned on the “BS detector.” When Musk joined Twitter Spaces on Nov. 12, a day after the exchange filed for bankruptcy, he voiced his thoughts on the former CEO of FTX.

“Honestly, I’ve never heard of him,” Musk said. “But then a ton of people told me that he had a huge amount of money that he wanted to invest in a Twitter deal. And I talked to him for about half an hour. I know my bulls… This guy is bull – that was my impression.”

Aside from Musk, other crypto personalities like former Microstrategy CEO and Bitcoin evangelist Michael Saylor have also shared their thoughts on what could have caused the FTX explosion. Saylor sneered, “Maybe FTX failed because Sam stole all the money?”

Ripple’s chief technology officer David Schwartz also commented on the matter. “As long as these things don’t happen, they always will,” he wrote. “The application is irresistible. This is one of the most important lessons of FTX. But most people will actively choose not to learn this lesson because of, among other things, the elephant in the room.”

On November 11, Bankman-Fried resigned from the position of the general director of the FTX. He has been accused of fraud and mismanagement of funds by crypto market traders, investors and participants.

FTX is currently led by its new CEO, John Ray II, who said after taking the helm: “Never in my career have I seen such a complete failure of corporate control and complete absence of reliable financial information as has occurred here. “

“From broken systems integrity and flawed regulatory oversight abroad, to the concentration of oversight in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented,” said the new FTX director general.

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