Novogratz Says Bankman-Fried Is ‘Delusional’ Over FTX Collapse

Olga Kharif and Sonali Basak, Bloomberg News

Mike Novogratz, founder and chief executive officer of Galaxy Digital LP, speaks during the TOKEN2049 in Singapore, on Wednesday, on Sept. 28, 2022. The cryptocurrency event runs through Sept. 29. Photographer: Edwin Koo/Bloomberg , Bloomberg

(Bloomberg) -- Galaxy Digital Chief Executive Officer Mike Novogratz characterized Sam Bankman-Fried as “delusional” when the former FTX exchange head recently sought to explain the collapse of his cryptocurrency empire.

“It’s kind of surprising that his lawyers are letting him speak,” Novogratz said on Bloomberg Television. “Having watched two interviews, the word delusional kept coming to mind.”

FTX and more than 100 affiliated companies filed for bankruptcy in November after failing to meet redemptions from customers that had lost faith in th exchange. The reason behind a $8 billion shortfall is still unclear.

“He’s in a reality that is not real,” Novogratz said. “The reality is that Sam and his cohorts perpetuated a fraud. He stole money from people, people should go to jail.”

Galaxy Digital is among the users who have funds trapped on the shuttered exchange. The firm disclosed a $76.8 million exposure to FTX.com.

On Wednesday, Bankman-Fried appeared via video in a long-ranging interview at the New York Times DealBook Summit.

“I didn’t ever try to commit fraud on anyone,” Bankman-Fried said at the conference.