Sam Bankman-Fried, the Founder and former CEO of the now-bankrupt crypto exchange FTX, has disclosed the firm’s financial situation, along with a statement of intent to restart and “do right by customers.”
SBF Reveals Illiquid Assets of FTX
In the wake of FTX’s ‘Chapter 11‘ bankruptcy filing made on Friday, November 11th, Sam Bankman-Fried, the exchange’s former CEO, has taken to Twitter to announce his goal to “raise liquidity, make customers whole, and restart.” He tweeted:
13) My goal—my one goal—is to do right by customers.
— SBF (@SBF_FTX) November 15, 2022
I’m contributing what I can to doing so. I’m meeting in-person with regulators and working with the teams to do what we can for customers.
And after that, investors. But first, customers.
Although FTX is said to have possessed a $10 billion hole in its balance sheet, the former FTX CEO claims that his companies held more assets than liabilities month-to-month. However, SBF clarified that they were not liquid assets.
Sponsored
In a thread of tweets, SBF revealed that FTX holds $8 billion in liquid assets, $5.5 billion semi-liquid, and $3.5 billion in illiquid assets. The crypto mogul further disclosed that Alameda had a margin position on FTX Intl and FTX US with enough funds to compensate all customers.
SBF Wants to Restart FTX
SBF, who notes that FTX was handling volumes of close to $10 billion per day, alleges that it is FUD that sparked the market crash that led to the liquidity crunch. SBF wrote:
15) A few weeks ago, FTX was handling ~$10b/day of volume and billions of transfers.
— SBF (@SBF_FTX) November 16, 2022
But there was too much leverage--more than I realized. A run on the bank and market crash exhausted liquidity.
So what can I try to do? Raise liquidity, make customers whole, and restart.
The former FTX CEO, who has admitted to his past failures, has said that he plans to “raise liquidity” from investors to “make customers whole, and restart.” Furthermore, SBF hopes to be able to clean up and focus on transparency going forward.
On the Flipside
- The contagion spreading from the FTX crash has spread throughout the crypto industry in a devastating ripple effect similar to the one seen in the wake of the crash of Terra Luna, with BlockFi reportedly preparing to file for bankruptcy.
Why You Should Care
The comments from SBF have received wide criticism from much of the crypto industry as perceptions towards the FTX Founder and his exchange shift, given the present financial crisis of his company.
More effects of the FTX crash are covered below:
Institutional Investors Forgo Digital Assets Following FTX Crash
Find out crypto Twitter’s reaction to SBF:
Crypto Twitter Bashes FTX (FTT) – El Salvador’s Bukele and Billy Markus Fire Shots at SBF
