Galaxy Digital CEO Mike Novogratz is predicting that disgraced former FTX CEO Sam Bankman-Fried will face prison time for allegedly committing fraud.
In a new interview with CNBC Squawk Box host Andrew Sorkin, the billionaire says Bankman-Fried is failing to take responsibility for his actions, the same ones that led to the downfall of the once-prominent crypto exchange.
Novogratz reacts to Sorkin’s recent interview of Bankman-Fried at the New York Times DealBook Summit.
“You’re seeing someone who is just spewing more lies. Sam has always been kind to me. He has a kind demeanor. That was part of the shtick. And I’m not saying he even planned this all like a criminal mastermind. What they did was criminal and they need to be prosecuted for it.”
Bankman-Fried is accused of mishandling billions of dollars worth of customer funds by allegedly loaning them to Alameda Research, FTX’s trading branch. Bankman-Fried told Sorkin he didn’t knowingly co-mingle any funds.
According to Novogratz, authorities need to prosecute Bankman-Fried as quickly as possible to restore investor trust in the markets.
“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. And so I’m hoping that the authorities get to the bottom of this faster, not just for the sanctity of the crypto markets, but for all markets.
Markets are based on trust and when you have trust broken like this it questions everyone else. People start looking for Black Swans everywhere.”
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