SBF breaks silence during house arrest; Provides details about the (in) solvency of FTX

SBF breaks silence during house arrest; Provides details about the (in) solvency of FTX

Sam Bankman-Fried (SBF) has published a written explanation in which he reports in detail about the collapse of FTX and Alameda Research, including estimates of the financial identification of both companies before this took place.

The former CEO claims that FTX could have "essentially fully" made the customers within a few weeks if he had not been put under pressure.

of the preliminary

The document entitled "FTX Pre-Mortem Overview" began to attribute Alameda's collapse to three causes. This included a large and mostly illiquid asset, the failure to secure his commitment during the Baisse, and that of Binance CEO Changpeng Zhao (CZ). tweet in early November.

In particular, Bankman-Fried believes that Alameda kept a net inventory value of around $ 100 billion in early 2022-only 7 % of which were considered "liquid". On November 10, however, the company had only $ 11 billion in assets-of which only $ 3 billion was "liquid"-and a NAV of $ 0.

This triggered a wave of infection that is comparable to the collapse of Three Arrows Capital in June-a large part of it was felt by FTX due to the large margin position of Alameda on the platform. Nevertheless, Bankman-Fried claimed that FTX still held $ 8 billion in assets with "fluctuating liquidity" before returning as CEO.

In addition, a further $ 4 billion in potential support from other groups in the form of signed declarations of intent (Lois) were reported-although he believes that these paths were abandoned by the new management of FTX.

"Even now I think that when the FTX is restarted, there is a possibility that customers are essentially restored," he said.

fraud allegations

Bankman-Fried was widely accused of committing fraud and theft together with Alameda Research by mixing user wealth values ​​at FTX with the Alameda trade funds. The new CEO of FTX, John Ray, attested So much before the Congress in December, while the Executive Chairman from Microstrategy, Michael Saylor, did this Style = "font-Weight: 400"> claims the same for several podcasts.

Bankmann-Fried denies such claims. "I didn't stole any funds and I certainly didn't hide billions," he said.

until 2022 Alameda made about 2 % of the trade volume to FTX, which was far less than in previous years.

According to Bankman-Fried, Alameda would have survived November if CZ and Binance did not operate the "extremely effective monthly PR campaign against FTX".

Caroline Ellison, CEO from Alameda, and Gary Wang, co-founder of FTX, each have a guilty Bankman-Fried.

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