Bankman-Fried Calls Handing FTX to New CEO His “Biggest Mistake,” Claiming It Cost a Potential Rescue

Sam “SBF” Bankman-Fried the once-prominent figure in crypto news and blockchain technology has declared from prison that his single worst decision during FTX’s multibillion-dollar collapse was handing control of the troubled crypto exchange to new CEO John J. Ray III, just before its bankruptcy. Bankman-Fried, who led FTX from trading darling to crypto pur cautionary tale, claims this move cost him a last-minute opportunity to save the company.

The Missed Rescue: Handover Ends All Hope

According to Bankman-Fried, after he officially ceded leadership on November 11, 2022, he received a call about an outside investment that could have rescued FTX. However, with the legal transfer signed and irreversible, the chance was lost. Hours later, Ray immediately filed for Chapter 11 bankruptcy, set legal advisor Sullivan & Cromwell (S&C) in motion, and began one of the costliest and most publicized bankruptcies in the history of blockchain technology.

• SBF maintains, “The single biggest mistake I made by far was handing the company over.” His regrets have been widely discussed in crypto news and blockchain circles, with post-mortems pointing to chaotic internal records, unprecedented mismanagement, and the infamous “Alameda gap” in FTX’s finances.

Aftermath: Bankruptcy, Legal Battles, and Customer Fallout

After Bankman-Fried’s arrest in the Bahamas and extradition to the US, he was sentenced to 25 years in prison for fraud, conspiracy, and other charges stemming from the collapse. The fallout saw Bitcoin and many digital assets sink to multi-year lows, pushing the entire crypto pur industry into a prolonged bear market.

• Customer funds, funneled without consent to Alameda Research, propelled billions in losses as creditors, investors, and the crypto news world watched the drama unfold.
• S&C, which had recommended Ray as restructuring chief, earned over $170 million in fees from the FTX bankruptcy sparking further controversy and lawsuits over its role, ultimately dismissed by 2024.

Creditor Recovery: Massive Repayments Still Ongoing

FTX’s new management has so far recovered billions in assets and begun repaying creditors:

• Over $7.8 billion distributed through three tranches in 2025, including a recent $1.6 billion phase, with plans to deliver an additional $8.7 billion.
• The exchange targets full repayment including up to 118% recovery for 98% of customers though final resolution remains a work in progress nearly three years after the collapse.

Still, for many, the bankruptcy process’s speed and outcomes remain contentious, with some questioning whether better crisis governance could have preserved value and restored trust in blockchain technology and crypto pur investment.

Lessons for Blockchain, Crypto Pur, and the Industry

SBF’s case is now a touchstone for the risks of opaque practices, internal controls failures, and personality-driven leadership in crypto news and blockchain organizations. Regulators, investors, and innovators point to FTX as a reason for stronger transparency and robust governance throughout all corners of blockchain technology and digital finance.

As more blockchain and crypto pur projects mature, the lessons of FTX serve as a cautionary tale reminding newcomers and veterans alike of the high stakes and the need for sustainable structures in the digital asset era.