Sam “SBF” Bankman-Fried, the former CEO and founder of the now-defunct cryptocurrency exchange FTX, has expressed regret over transferring control of FTX to new management, which he believes was the crucial error that impeded any chance he had to salvage the company.

In an interview with Mother Jones, Bankman-Fried claimed that the transfer of leadership to John J. Ray III on November 11, 2022, just moments before FTX’s filed for Chapter 11 bankruptcy, marked the pinnacle of his mistakes:

“The single biggest mistake I made by far was handing the company over.”

This decision came shortly before he learned of a potential external investment that could have rescued the exchange, but he was unable to revert his decision in time. Bankman-Fried, who previously led FTX to a valuation of $32 billion, is currently serving a 25-year prison sentence for felony charges linked to FTX’s collapse and the misappropriation of $8.9 billion in investor funds.

FTX’s Downfall

The collapse of FTX stemmed from the misuse of user funds, leading to considerable trading losses for its affiliate, Alameda Research. After Ray’s appointment, the law firm Sullivan & Cromwell was brought on board to assist with the bankruptcy proceedings.

Notably, two days before the bankruptcy filing, an attorney from Sullivan & Cromwell suggested Bankman-Fried appoint Ray as a chief restructuring officer. The aftermath of FTX’s failure has left creditors anxious, still awaiting over $4.2 billion in repayments. Furthermore, recent payments from the FTX estate have begun to address these financial obligations, but more is needed as the saga continues.

Stay tuned for updates as this story unfolds.