Sam Bankman-Fried Shares His Opinion On How FTX Crashed
Sam Bankman-Fried, who was arrested and indicted in the Bahamas and was the founder of the virtual currency exchange 'FTX', which filed for Section 11 bankruptcy in November 2022, FTX has publicly released a summary of its view that with just a little more time, it could have saved its customers.
FTX Pre-Mortem Overview - SBF's Substack
Bankman-Fried was arrested and charged in the Bahamas in December 2022. After being transferred to the United States, he was released on bail of 250 million dollars (about 33 billion yen) and is under house arrest at his home in California, but continues to send information on Twitter.
According to Defendant Bankman-Fried, Alameda Research, a cryptocurrency hedge fund closely related to FTX, will have a net asset value of about $100 billion (about 13 trillion yen) in 2021, and liquidity funds on hand will be about $100 billion. Although it was 7 billion dollars (about 900 billion yen), it was not possible to hedge the risk of exposure (assets exposed to specific risks), and in 2022 the asset value was about 80% reduction. Furthermore, in November 2022, the move of Binance CEO Changpong Zhao caused a further price crash, Alameda Research fell into insolvency, and the impact spread to FTX.
Defendant Bankman-Fried described this as something similar to what happened to Voyager, Genesis, Celsius, BlockFi, Gemini, etc. when the virtual fund Three Arrows (3AC) collapsed .
He suggested that if FTX had just a few weeks to raise the liquidity it needed, it would have effectively guaranteed its customers. Defendant Bankman-Fried also argues that it is possible to rescue customers even at the time of writing this view. However, this view is based on Bankman-Freed's own assertion, and a cold gaze is poured from the surroundings.
Dave Weisberger, CEO of the cryptocurrency exchange Coin Rotes, dismissed Bankman-Fried's repeated claim that ``FTX's funds were not stolen'' as a lie, and FTX and Alameda Research He described what he was doing as 'a bank manager teaming up with a robber to keep the safe open.'
2/ His claims of 'not stealing' is BS. Allowing Alameda's losses to impact client assets was theft. He benefited directly & ordered the exemption that allowed Alameda to 'go negative' to be created— Dave Weisberger (@daveweisberger1) January 12, 2023
Its like a bank manager leaving the vault open & partnering with the thieves...
The news site Axios, which reported on this view, commented, ``The content has already been made public, the content that was planned to testify in Congress, and the past remarks of the person himself.
Sam Bankman-Fried sticks to his script
In addition, the news site Engadget pointed out that Bankman-Fried continued tweeting and responding to interviews after bail, and that the content was reflected in the Securities Commission's complaint, saying, ``This time it was posted on Substack. It will also turn out to be a mistake.'
SBF thought it was a good idea to start a Substack | Engadget
in Note, Posted by logc_nt