The founder and CEO of Galaxy Digital, Mike Novogratz, has chimed in on the highly publicised interview between FTX’s Sam Bankman-Fried and the New York Times.

According to Mr Novogratz, Sam was delusional in his responses and description of the events that led to the collapse of FTX due to the mismanagement of users’ funds. The Galaxy Digital CEO shared his analysis of the NYT interview during a live session on CNBC’s Squawk Box.

‘This is a young guy certainly in distress. [The interview] was delusional. Let us be very clear. Sam is delusional about what happened and his culpability in it. We can all be like dime-store psychiatrists…there is a lot of narcissism in there. There is a lot of grandiosity,’ he said.

Sam Needs to Be Prosecuted — Mike Novogratz

Mr Novogratz added that Sam Bankman-Fried needed to be prosecuted for his actions.

He explained, ‘Being a psychiatrist is not really going to help. He needs to be prosecuted. He will spend time in jail. They perpetuated a large fraud. And it wasn’t just Sam. You just do not pull this off with one person.’

Markets are Based on Trust, and Sam is Spewing More Lies

The Galaxy Digital CEO pointed out that the authorities needed to act fast to get to the bottom of what happened at FTX. He stressed that the collapse of the exchange had dented not only the crypto markets but all markets since ‘markets are based on trust.’

‘When you have trust broken like this, it questions everyone else. People start looking for black swans everywhere,’ he added.

Furthermore, Mr Novogratz told CNBC that Sam was ‘just spewing more lies.’ He also pointed out that Sam was always kind to him and questioned whether it was all part of the ‘shtick’ or performance to gain trust.

‘What they did was criminal, and they need to be prosecuted,’ Mr Novogratz concluded.