Shark Tank Star Kevin O’Leary and multi-billionaire hedge fund manager Bill Ackman have been criticized for voicing their belief that former FTX CEO Sam Bankman-Fried (SBF) was telling the truth when he claimed he had not knowingly mixed funds, and that he was not running Alameda. “I didn’t know exactly what was going on.”
Kevin O’Leary and Bill Ackman Stand By Sam Bankman-Fried
Shark Tank Star Kevin O’Leary and Bill Ackman, the CEO and portfolio manager of Pershing Square Capital Management, have come under fire following their statement that they believe the former CEO of crashed crypto-exchange FTX, Sam Bankman-Fried (SBF), spoke the truth during a Dealbook Summit interview aired Wednesday night. The exchange went bankrupt, leading to an estimated one million investors and customers suffering billions of dollars in losses.
Bankman-Fried stated during the interview that he “did not knowingly mix funds.” He also blamed Alameda Research, stating, “I didn’t run Alameda… I didn’t know exactly what was going on.”
While the majority of the crypto community does not accept Bankman-Fried’s story, two prominent figures spoke in support of the former FTX CEO. After the interview, Ackman tweeted: “Call me crazy but I think SBF is telling the truth.” O’Leary quickly agreed, stating that he had listened to the interview and was in agreement.
Many people have disagreed with O’Leary and Ackman’s stance, with some calling them “morons”, “idiots” and “swindlers”. One wrote: “I am a bit puzzled by the perception that SBF is the stupid guy who made a mistake. He is 31 years old. This isn’t an example of a recent 23-year-old graduate making a business misstep at the desk. The narrative around this story shouldn’t be like that.”
“I would imagine that if I were a public spokesperson for what turned out to be a Ponzi, I would probably expect the leader to also walk free without criminal charges (I am less likely to be charged with criminals). I’m just saying, look at the incentives,” another comment read.
A third opined: “I think I understand now. All these statements are legal protection, and the interview was carefully crafted. It is better to be a spokesperson of something that has failed than for something which has committed huge fraud. Blatantly it’s obvious that this is true.” A fourth said: “You gave millions of dollars to a scammer who didn’t know anything about managing an exchange or hedge funds or protecting investor assets.”
Following the FTX crash, O’Leary said he would support Bankman-Fried if he is a shareholder in another company, and that Bankman-Fried is one of the most successful traders in crypto. Mr. Wonderful also recently revealed that FTX was almost saved by $8 billion before it collapsed.
What are your thoughts on Kevin O’Leary and Bill Ackman believing that SBF didn’t know what to do when it mixed funds? Please let us know in the comments section below.
