Sam was delusional about what happened, says Mike Novogratz

• Galaxy Digital’s CEO has claimed that SBF was delusional about what happened.

• SBF needs to spend time in jail for the crimes he has committed.

• Mike Novogratz claims that SBF wasn’t alone in pulling off these crimes.

SBF is responsible for what happened

Mike Novogratz, the CEO of Galaxy Digital, told CNBC in an interview a few hours ago that Sam Bankman-Fried is delusional about what happened. He added that SBF needs to be held responsible for what happened with FTX.

“It was delusional. Let’s be really clear. Sam was delusional about what happened and his culpability in it,” says @novogratz. “He needs to be prosecuted. He will spend time in jail. And it wasn’t just Sam. You don’t pull this off with one person.” pic.twitter.com/0SSh1r8XIL

— Squawk Box (@SquawkCNBC) December 1, 2022

In an earlier interview, SBF claimed that FTX never used customers’ funds to invest in other assets and companies. At the time, he said;

“But I would phrase it differently. I think if I were to say that today I would say, ‘look, FTX itself doesn’t invest client assets, but there are margin positions open, and we don’t know what all of the clients are doing with their business outside of FTX.’ Which means that we have a duty to manage the positions that are open on FTX to the extent that we don’t have full recourse or insight into investments that are made off of it.”

While responding to SBF’s latest interview, Novogratz said;

“It was delusional. Let’s be really clear. Sam was delusional about what happened and his culpability in it. There is a lot of narcissism there, but seeing a psychiatrist isn’t going to help. He needs to be prosecuted. He will spend time in jail. They perpetuated a large fraud. And it wasn’t just Sam. You don’t pull this off with one person.”

Authorities need to get to the bottom of the situation

Novogratz added that he is hoping that the authorities get to the bottom of the situation faster, not just for the sanctity of the crypto market but for all markets. He added that;

“Markets are based on trust, and when you have trust broken like this, it questions everyone else. People start looking for black swans everywhere.”

The Galaxy Digital boss maintained that what FTX did was criminal and SBF and the others need to be held accountable for it. 

This latest development comes a few days after Bankman-Fried claimed that FTX’s hacker might be a former employee.