Sam Bankman-Fried admits FTX ‘sure should have’ done more to protect customers’ money
In a new interview, Sam Bankman-Fried, the CEO of leading cryptocurrency derivatives platform FTX, has admitted that the company “sure should have” done more to ensure that customer funds were adequately protected.
Bankman-Fried’s comments come in the wake of the recent discovery that a New York-based customer had been able to execute numerous trades on FTX, resulting in a negative balance of over $117,000. The customer was able to do this by exploiting a loophole that allowed them to place orders above their account balance.
Bankman-Fried noted that FTX takes its responsibility to protect customers’ funds seriously, but acknowledged that there was a problem with the company’s risk management model. He said that FTX has taken steps to eliminate such a loophole in the future, but that the issue with this particular customer should not have happened.
Bankman-Fried promised that FTX is now working to ensure that customers are better protected in the future, and vowed to be more proactive in tackling these issues before they happen. He said that the company will ensure to employ a more stringent risk management system and will employ more sophisticated tools to mitigate future occurrences. Finally, he added that FTX will also work to improve communication with customers in order to prevent similar issues from occurring again.