Elon Musk: Sam Bankman-Fried 'turned off my BS detector' when approached for Twitter investment

After the epic collapse of Sam Bankman-Fried’s entire crypto empire this week, even Elon Musk took a moment from his extremely chaotic week took to Twitter to say he never trusted SBF, who stepped down as CEO of FTX on Friday when the company filed for Chapter 11 bankruptcy.

Bankman-Fried contacted Musk back in March through their intermediaries (in SBF’s case it was William McCaskill of the philanthropic arm of FTX’s Future Fund, who close on friday) to express interest in investing in Musk’s bid for Twitter. This news came out in September when Musk text messages leaked through legal proceedings.

Musk’s banker on the Twitter deal, Michael Grimes of Morgan Stanley, told Musk at the time that SBF was offering “at least $3 billion” to help Musk buy Twitter and wanted to talk about the potential for “blockchain integration of social media’.

Musk asked Grimes, “Does Sam actually have $3 billion liquid?”

On Friday evening, as Crypto Twitter continued to have a field day circulating a recent story involving SBF, a popular account that shares internal emails in the tech industry retweeted the exchange. Musk replied, “Exactly. It set off my bs detector, which is why I didn’t think there was $3 billion.”

Grimes had discussed the Bankman-Fried proposal with Musk, texting: “He’s into you… I believe you’re going to love him. Ultra genius and skill builder like your formula. Built FTX from scratch after MIT physics.”

Bankman-Fried was interested in helping design a blockchain version of Twitter. Musk, despite being a proponent of crypto, rejected this proposal, telling Grimes significantly, “Twitter on the blockchain is not possible.” He added that he would only meet with the SBF “as long as I don’t have to have a difficult blockchain debate.”

Grimes told Musk that even without the blockchain component, Bankman-Fried wants to invest. Musk passed.

Of course, in light of the financial malfeasance behind the scenes at FTX – which it was using client funds and own FTT token to support SBF’s Alameda hedge fund — all eager to distance themselves from the stink.

On October 27, Musk took control of Twitter.

Over the next two weeks, FTX went up in flames after Changpeng “CZ” Zhao, CEO of rival exchange Binance, announced that his company would is liquidating its FTT token holdings of FTX. This drove down the price of FTT and caused $5 billion of customers to withdraw from FTX that they did not have the liquidity to cover.

Musk, even after the public mess of the fake Twitter account crisis this week, definitely had a better week than Bankman-Fried.

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