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.