FTX founder Sam Bankman-Fried (SBF) said in his final interview from prison that handing over control of the company to current CEO John J. Ray III in November 2022 was his “biggest mistake.” Bankman-Fried stated that the decision “destroyed the exchange’s chance to save it.”
Bankman-Fried's statements garnered attention during the investigation following FTX's collapse, during which the law firm Sullivan & Cromwell received more than $171 million in fees. SBF maintains its innocence: “I didn't defraud anyone,” it says. However, the jury's verdict confirmed that FTX's collapse was one of the largest financial crimes in history.
Serving a 25-year prison sentence as of 2025, Bankman-Fried didn't abandon her habits even while criticizing prison rules in an interview: “We're only allowed to wear overalls from 6 a.m. to 3 p.m. I don't know who made such a pointless rule,” she said, humorously describing prison conditions.
SBF's parents, Stanford University law professor Joe Bankman and Barbara Fried, are on their son's defense team and are preparing to appeal the conviction. “I'm outraged to think of Sam sitting in prison; everything he could have contributed to the world has been destroyed,” Fried said.
The family alleges that Sullivan & Cromwell was primarily responsible for FTX's bankruptcy. The law firm allegedly took control of the company from SBF, appointed John J. Ray III as CEO, and profited significantly from the bankruptcy. Bankman-Fried's team argues that this accelerated FTX's collapse.
John J. Ray III, however, says SBF is “deceiving itself.” According to Ray, during the Bankman-Fried era, FTX was a veritable “house of cards,” and he and Sullivan & Cromwell managed to save thousands of customers money.
FTX's 2022 collapse began with a financial report published by Coindesk. According to the leak, SBF's proprietary trading firm, Alameda Research, relied heavily on FTX's own token, FTT. This eroded investor confidence, leading to massive withdrawals and eventual bankruptcy.
*This is not investment advice.
