Updated on January 9, 2023 12:50 PM
Elon Musk, the CEO of Tesla and SpaceX, has asserted that he never had faith in Sam Bankman-Fried, the founder and former CEO of FTX.
Bankman-Fried contacted Musk in March to indicate his interest in investing in Twitter when Musk sought to acquire money to pay for his $44 billion purchase through intermediaries.
According to texts that have surfaced, Michael Grimes, Musk's banker on the Twitter acquisition, said that the billionaire SBF was willing to invest "at least $3 billion" to assist Musk in purchasing Twitter and that he wanted to discuss the prospects for social media blockchain integration.
Musk disclosed that he spoke with Sam Bankman-Fried, the exchange's former CEO and that he didn't have the best impression of him.
"I got a ton of people telling me he's got huge amounts of money that he wants to invest in the Twitter deal and I talked to him for about half an hour and I know my bullshit meter was redlining. It was like, this dude is bullshit – that was my impression."
A copy of the texts was published on Friday by Twitter user Internal Tech Emails, who has over 347k followers on the social networking site. Tesla said, "Accurate. He set off my BS detector, which is why I did not think he had $3B."
The text exchanges, which revealed that SBF was prepared to invest up to $5 billion toward the acquisition of Twitter, first surfaced back in September as part of judicial procedures.
Musk added that he had never heard of him before and claimed:
"Everyone including major investment banks – everyone was talking about him like he's walking on water and has a zillion dollars. And that was not my impression – that dude is just, there's something wrong, and he does not have capital and he will not come through. That was my prediction."
Regulators from all around the world began to freeze the ailing exchange's assets after the bankruptcy declaration.
The platform's Bahamian company, FTX Digital Markets Ltd., had its assets first frozen by the Securities Commission of the Bahamas. According to the agency, the freezing is meant to safeguard assets and stabilize the firm and is considered "the sensible course of action."
Following FTX's abrupt collapse this week, the Securities and Exchange Commission (SEC) and Justice Department (DOJ), two central regulatory bodies, said they are looking into the matter, and a brief investigation is on.