Thread by @nikhileshde

.@andrewrsorkin's interview of @SBF_FTX for the #DealBookSummit is starting now. You can watch at this link and thread starts here nytimes.com/live/2022/11/3…

.@andrewrsorkin: "There are people who don't believe that this conversation should happen. And I just want to say that I think our job as journalists is to have those conversations, to ask those questions and seek those answers on behalf of the public." #DealBookSummit

.@andrewrsorkin: "There are two ways to view what has happened at FTX ... there's a generous view, and the generous view is that you are a young man who made a series of terrible, terrible very very bad decisions. The less generous view is you have committed a massive fraud."

.@SBF_FTX: "At the end of the day I was CEO of FTX and that means whatever happened... I had a duty to all of our stakeholders, to our customers... I have tod o right by them to make sure the right things happen to the company ... clearly I made a lot of mistakes" #DealBookSummit

In response to first audience q, @SBF_FTX says there's US platform and intl platform, "I believe that withdrawals could be opened up today" on US platform #DealBookSummit

@SBF_FTX .@SBF_FTX says he has limited access to data but "from what I have been able to see ... basically a year ago Alameda had something like 10% leverage" #DealBookSummit

.@andrewrsorkin: "I think the bigger question is where Alameda got the loan from, which is to say there's a view that this is about commingling of funds," cites FTX terms of service which says FTX doesn't own user funds #DealBookSummit

.@SBF_FTX says there are a number of other parts of terms #DealBookSummit

.@andrewrsorkin asks directly if there was commingling funds

@SBF_FTX: "I didn't knowingly commingle funds ... I wasn't trying to commingle funds." #DealBookSummit

@andrewrsorkin @SBF_FTX .@andrewrsorkin asks SBF to square what he said on Twitter about an $8 billion accounting mistake with a WSJ report saying Alameda Research chief @carolinecapital told staffers Alameda used FTX client funds to cover loans #DealBookSummit

@andrewrsorkin @SBF_FTX @carolinecapital .@andrewrsorkin drilling in on the separation between Alameda and FTX (and apparent lack thereof)

"I think the question is whether you were supposed to have access to these accounts to begin with?"

#DealBookSummit

@andrewrsorkin @SBF_FTX @carolinecapital .@SBF_FTX: "I wasn't running Alameda, I didn't know exactly what was going on. I didn't know the size of their position, a lot of these are things that I've learned over the last month." Keeps saying this was a mistake he made #DealBookSummit

@andrewrsorkin @SBF_FTX @carolinecapital .@SBF_FTX saying he was nervous about a conflict of interest if he ran Alameda #DealBookSummit

@andrewrsorkin @SBF_FTX @carolinecapital .@andrewrsorkin: "When did the commingling of assets begin?"

@SBF_FTX: "They didn't ... lots of traders had open margin positions on FTX where they would have borrowed assets, where they would be short some asset against other assets as collateral" #DealBookSummit

.@andrewrsorkin: "It sounds like it's fair to say that there was always a connection between Alameda and FTX"

Later asks if SBF was just "hoping against hope that this would all work out and then nobody would realize what this commingling was all about?" #DealBookSummit

@andrewrsorkin .@SBF_FTX now explaining the whole people were "wiring money to Alameda to get credited on FTX" thing #DealBookSummit

@andrewrsorkin @SBF_FTX .@andrewrsorkin: "What do you make of the argument that Alameda was used to effectively wash money?"

@SBF_FTX asks if FTX US or FTX intl, Sorkin says intl

"Those users still had to go through the [KYC] policy on FTX," SBF says #DealBookSummit

@andrewrsorkin @SBF_FTX "So when do you think you knew that there was a problem?" @andrewrsorkin asks

@SBF_FTX says Nov 6 #DealBookSummit

@andrewrsorkin @SBF_FTX "This started, I would say, November 2nd or so when there was only the Alameda Balance sheet leaked to @CoinDesk.." @SBF_FTX says (H/t @IanAllison123) #DealBookSummit

@andrewrsorkin @SBF_FTX @CoinDesk @IanAllison123 .@SBF_FTX says he was concerned that would lead to "substantial losses for Alameda" #DealBookSummit

@andrewrsorkin @SBF_FTX @CoinDesk @IanAllison123 .@andrewrsorkin now asking about SBF trying to rescue other companies: "When you were doing that, at that time how much of that was an effort to prop up the value of things like $FTT?" #DealBookSummit

@andrewrsorkin @SBF_FTX @CoinDesk @IanAllison123 "I don't think any of the [companies?] to my knowledge owned a lot of FTT, I thnk a lot of them you may have been using it as collateral or taking it as collateral. I don't think they owned it though," @SBF_FTX says #DealBookSummit

@andrewrsorkin @SBF_FTX @CoinDesk @IanAllison123 "Clearly you were using FTT and Solana and other tokens as collateral and part of that required you to mark them in a specific way" to assign a value, @andrewrsorkin says. "Do you think you were marking them correctly?" @DealBookSummit

@andrewrsorkin @SBF_FTX @CoinDesk @IanAllison123 "I don't think I was marking them the way I wish I had from a risk perspective" @SBF_FTX says #DealBookSummit

@andrewrsorkin @SBF_FTX @CoinDesk @IanAllison123 "You told investors and regulators that you were not involved in Alameda's decision-making, and yet Alameda invested $1.15B in Genesis [ed note Genesis = CoinDesk sister co]" @andrewrsorkin says #DealBookSummit