FTX Has Enough Funds to Compensate Customers – Sam Bankman-Fried Wants to Restart the Exchange

Sam Bankman-Fried standing in the water and holding a bag of cash

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:

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.

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:

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.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

Author

Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).