Sam Bankman-Fried Rebuffed Barry Silbert’s and Celsius’ Requests for Help, Ex-FTX CEO Testifies at His Trial

In the midst of Sam Bankman-Fried’s criminal trial, it has been revealed that the former FTX CEO rebuffed requests for help from prominent figures in the crypto industry, including Barry Silbert and Celsius. Prior to the collapse of his empire, Bankman-Fried had played the role of a white knight for struggling companies like BlockFi and Voyager. However, when faced with requests for assistance from Silbert’s Digital Currency Group and Celsius, Bankman-Fried chose not to extend a helping hand. This testimony sheds light on the complex dynamics at play in the crypto world, where even major players are not immune to financial struggles and the lack of a conventional backstop like the Federal Reserve.

Sam Bankman-Fried Rebuffed Barry Silbert’s and Celsius’ Requests for Help, Ex-FTX CEO Testifies at His Trial

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Introduction

In the ongoing trial of Sam Bankman-Fried, the former CEO of FTX, it has been revealed that he turned down requests for help from notable figures in the crypto industry. Specifically, Barry Silbert, the CEO of Digital Currency Group (DCG), and the Celsius cryptocurrency exchange approached Bankman-Fried for assistance during times of financial distress. Despite Bankman-Fried’s reputation as a savior for struggling companies, he refused to lend a hand to these organizations. This article delves into the details surrounding Bankman-Fried’s role, Silbert’s request for help, Celsius’ plea for assistance, and the ensuing bankruptcy of several companies.

Sam Bankman-Fried’s Role as a Savior for Struggling Companies

Throughout his career, Sam Bankman-Fried gained a reputation for coming to the aid of struggling companies in the cryptocurrency industry. He notably provided assistance to BlockFi and Voyager during challenging times. Bankman-Fried’s support helped these companies weather the storm and regain stability. However, the trial reveals instances where Bankman-Fried chose not to extend his helping hand, which ultimately led to the downfall of those organizations.

Bankman-Fried’s previous assistance to BlockFi and Voyager

Bankman-Fried’s involvement with BlockFi and Voyager demonstrated his willingness to assist struggling companies. These organizations faced financial difficulties that put their operations at risk. Bankman-Fried stepped in, offering the necessary support in the form of capital and resources, which helped BlockFi and Voyager navigate their way out of troubled waters.

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Barry Silbert’s Request for Help

Barry Silbert, the CEO of DCG and a prominent figure in the cryptocurrency industry, turned to Sam Bankman-Fried during a period of financial distress. Silbert requested equity capital for DCG’s Genesis subsidiary, which had suffered significant losses due to the collapse of crypto hedge fund Three Arrows Capital. Genesis, unable to recover from these losses, ultimately filed for bankruptcy. Despite Silbert’s plea for assistance, Bankman-Fried declined to provide the needed capital, contributing to Genesis’ downfall.

Impact of the collapse of Three Arrows Capital on Genesis

The collapse of Three Arrows Capital had severe consequences for Genesis. As a crypto hedge fund, Three Arrows Capital experienced significant financial losses, which reverberated throughout the industry. Genesis, having partnered with Three Arrows Capital, incurred substantial losses as well. These losses, combined with the absence of support from Bankman-Fried, pushed Genesis to file for bankruptcy.

Genesis filing for bankruptcy

Unable to recover from the financial losses caused by the collapse of Three Arrows Capital and the lack of assistance from Bankman-Fried, Genesis was left with no choice but to file for bankruptcy. The bankruptcy filing marked the end of Genesis’ operations as a provider of trading services.

Celsius’ Request for Help

Celsius, a well-known cryptocurrency exchange and lender, also sought assistance from Sam Bankman-Fried during a time of financial hardship. The company requested emergency funds to stabilize its operations. However, Bankman-Fried rejected their plea for help, further exacerbating Celsius’ already precarious situation.

Celsius’ request for emergency funds

Facing a financial crisis, Celsius turned to Bankman-Fried in the hopes of securing emergency funds. The company needed additional capital to sustain its operations and overcome the challenges it was facing. Unfortunately, Bankman-Fried did not see fit to provide the necessary financial support, leaving Celsius in a vulnerable position.

Bankman-Fried’s rejection of the request

Despite his track record of assisting struggling companies, Bankman-Fried decided against helping Celsius. His refusal to extend financial assistance to the exchange contributed to Celsius’ eventual bankruptcy.

Bankruptcy of Celsius

With no lifeline extended by Bankman-Fried, Celsius was unable to overcome its financial difficulties. The company ultimately filed for bankruptcy, ceasing its operations as a cryptocurrency exchange and lender.

The Bankruptcy of Genesis, Celsius, Voyager, and BlockFi

The bankruptcy of Genesis, Celsius, Voyager, and BlockFi represents a significant turning point in the cryptocurrency industry. These companies, once considered prominent players in the market, succumbed to financial pressures and filed for bankruptcy.

Bankruptcy of Genesis

As previously mentioned, Genesis’ bankruptcy was driven by the collapse of Three Arrows Capital, as well as the lack of support from Bankman-Fried. The company was unable to recover from the financial losses incurred and had to cease its trading services.

Bankruptcy of Celsius

Celsius’ bankruptcy was a result of a combination of financial challenges and the denial of assistance from Bankman-Fried. The company’s inability to secure emergency funds, coupled with its existing financial struggles, led to its downfall.

Bankruptcy of Voyager

Voyager, another cryptocurrency exchange, also faced financial difficulties and eventually filed for bankruptcy. The company’s bankruptcy came as a surprise to many in the industry, as it was once seen as a promising player in the market.

Bankruptcy of BlockFi

BlockFi, a company that offers cryptocurrency lending services, experienced financial troubles and followed suit by filing for bankruptcy. The collapse of BlockFi further highlighted the financial strain experienced by companies in the crypto industry during that period.

Connectivity between the collapses

The bankruptcy of Genesis, Celsius, Voyager, and BlockFi showcases the interconnectedness of the crypto industry. The collapse of one company can have a ripple effect on others, leading to a domino effect of financial struggles and ultimately bankruptcy.

Spokespeople’s Response

After Bankman-Fried’s testimony regarding his rejection of requests for help, the spokespeople for DCG and Celsius responded to his claims. Digital Currency Group defended its actions, stating that they had explored all possible avenues for support before reaching out to Bankman-Fried. Celsius, on the other hand, expressed disappointment over the lack of assistance, emphasizing the detrimental impact it had on the company.

DCG’s response to Bankman-Fried’s testimony

Digital Currency Group disputed Bankman-Fried’s claims and asserted that they had exhausted all available options before approaching him for assistance. The company maintained that they made every effort to address the financial challenges faced by Genesis.

Celsius’ response to Bankman-Fried’s testimony

Celsius expressed disappointment in Bankman-Fried’s decision to deny their request for emergency funds. The rejection had severe consequences for the company, contributing to its eventual bankruptcy. Celsius emphasized the importance of support from industry leaders during challenging times and highlighted the impact that Bankman-Fried’s denial had on their operations.

Conclusion

The trial of Sam Bankman-Fried has shed light on his role as a savior for struggling companies and the subsequent rejection of requests for help from industry figures such as Barry Silbert and Celsius. Bankman-Fried’s decisions not to extend financial assistance to these organizations played a significant role in their bankruptcy filings. The interconnectedness of the crypto industry became evident as the collapses of Genesis, Celsius, Voyager, and BlockFi unfolded. The responses from DCG and Celsius reflect the impact of Bankman-Fried’s actions and the disappointment felt by the companies. The trial continues to provide insights into the events leading up to the downfall of Bankman-Fried’s FTX empire.

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