Billionaire Dallas Maverick owner Mark Cuban recently offered his perspective on the implosion of crypto platform FTX later this week.
““This is someone running a company that’s just dumb as fuck greedy.”“
Cuban, speaking Friday at a conference in Washington, D.C., organized by Sports Business Journalshared the view that greed is at the root of the downfall of one-time crypto darling Sam Bankman-Fried, whose firm FTX Group just filed for chapter 11 bankruptcy.
“So what does Sam Bankman do [Fried] do, he’s just – “give me more, give me more, give me more”. So I’m going to borrow money, give it to a subsidiary, and hope and pretend to myself that the FTT tokens that are there in my balance will hold their value.”
FTX’s collapse marks a stunning turnaround for a company that was once valued at $26 billion and whose founder, Bankman-Fried, was seen by many in the crypto industry as a respected actor in the Wild West of digital exchanges.
On Thursday, the 30-year-old entrepreneur tweeted: “I stood up and should have done better,” referring to the collapse of his exchange.
Embattled FTX, short on billions of dollars, sought bankruptcy protection after the exchange suffered the crypto equivalent of a bank run. FTX, an affiliated Alameda Research hedge fund, and dozens of other related companies also filed for bankruptcy in Delaware on Friday morning. Sam Bankman Freed net worth which recently boasted close to $16 billion is almost evaporated as a result of the FTX implosion, according to the Bloomberg Billionaires Index.
The price of FTX’s native token FTT has fallen by around 88.8% in the past seven days to around $2.74, according to CoinMarketCap data.
The US Department of Justice and the Securities and Exchange Commission are investigating the crypto exchange to determine whether criminal activity or securities-related crimes have occurred.
Regulators are also looking into whether FTX used customer deposits to finance bets at Alameda Research, according to reports no-no in traditional markets.
Cuban, who is one of the stars of the investment show “Shark Tank” and owns the NBA’s Dallas Mavericks, is a major investor in crypto and blockchain-related platforms. According to a CNBC report, he said that 80% of his investments non-Shark Tank are crypto-centric.
For his part, Cuban is part of a class action lawsuit of misleading investors in registering accounts at crypto platform Voyager Digital, which filed for bankruptcy in July. The suit alleges that Cuban advertised his support for Voyager and referred to it as “as close to risk-free as you can get in the crypto universe.”
Cuban mentioned Voyager in his Friday interview. Representatives for the billionaire investor did not immediately respond to a request for comment.
The owner of the Mavericks took to Twitter on Saturday to say that crypto implosions “are bank implosions. Lending to the wrong entity, wrong collateral valuations, arrogant arbitrage followed by depositors fleeing.”
Cuban’s net worth is $4.6 billion, according to Forbes.