Sam Bankman-Fried Denies Allegations of Wrongdoing in Bankruptcy Proceedings

Sam Bankman-Fried Denies Allegations of Wrongdoing in Bankruptcy Proceedings

Ex-CEO of collapsed crypto exchange Sam Bankman-Fried breaks his silence and publishes a “pre-mortem overview” about FTX.

On Jan 12, Sam Bankman-Fried posted on Substack highlighting the company’s insolvency and the factors that caused it. 

In his post, he differentiated the companies under the FTX umbrella, FTX International and FTX US. 

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He claimed that FTX US has always been solvent and is able to return all customers’ funds. 

“FTX International has many billions of dollars of assets, and I am dedicating nearly all of my personal assets to customers,” said Bankman-Fried.

According to him, the insolvency was a result series of events, including the growth of Alameda's balance sheet to $100 billion of Net Asset Value and $8 billion of net borrowing, failure to sufficiently hedge its market exposure, and a targeted crash precipitated by the CEO of Binance.

However, he also strongly rejected the allegations against him in the bankruptcy proceedings.

“I didn’t steal funds, and I certainly didn’t stash billions away.  Nearly all of my assets were and still are utilizable to backstop FTX customers.  I have, for instance, offered to contribute nearly all of my personal shares in Robinhood to customers or 100%, if the Chapter 11 team would honor my D&O legal expense indemnification,” he stated.

According to the written peace, the former CEO of FTX, Sam Bankman-Fried, admitted that he was slow to respond to public misperceptions and material misstatements regarding the insolvency of FTX International. In a statement, Bankman-Fried explained that it took him some time to piece together what information he could.

In other FTX-related news, the judge rules against senatorial influence on the FTX bankruptcy case.

Aaron S. - Expert Reviewer

by Aaron S. - Expert Reviewer, BitDegree


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