Sam Bankman-Fried (SBF) released a written statement outlining its account of the collapse of FTX and Alameda Research, including estimates of each company’s financial statements before it happened.
The former CEO claims that FTX could have made clients “essentially complete” in a matter of weeks had he not been pressured to file for bankruptcy.
The document, titled “Antemortem Overview of FTX,” began by pinning Alameda’s collapse on three causes. These included a large and mostly illiquid asset pile, a failure to hedge its exposure during a bear market, and Binance CEO Changpeng Zhao (CZ) tweet At the beginning of November.
Specifically, as of early 2022, Bankman-Fried believes Alameda had nearly $100 billion in net asset value — only 7% of which was considered “liquid.” As of November 10, the company had only $11 billion in assets remaining — only $3 billion of which was “liquid” — and a net asset value of $0.
This led to a wave of contagion comparable to the collapse of Three Arrows Capital in June – FTX felt most of it due to the large margin position on the platform. However, Bankman-Fried claimed that FTX still held $8 billion in assets of “variable liquidity” before he stepped down as its CEO.
In addition, another $4 billion in potential support has reportedly been provided by other groups in the form of signed letters of intent (LOIs) — although FTX’s new leadership is believed to have abandoned those avenues.
“So far, I think if FTX International were to restart, there would be a real possibility that customers would be pretty much complete,” he said.
Bankman-Fried has been widely accused of committing fraud and theft alongside Alameda Research by moving user assets on FTX using Alameda exchange-traded funds. FTX’s new CEO, John Ray, Witnessed Equally to Congress in December, while MicroStrategy CEO Michael Saylor claimed Same in many podcasts.
Bankman Fried Negates Despite some of these claims. He said, “I didn’t steal money, and I certainly didn’t save billions.”
In 2022, Alameda accounted for about 2% of the trading volume on FTX, which was significantly lower than in previous years.
According to Bankman-Fried, Alameda could have survived last November had it not been for CZ and Binance’s “months-long highly effective PR campaign against FTX.”
Alameda CEO Caroline Ellison and FTX co-founder Gary Wang have it Admission of guilt To deceive FTX investors in association with Bankman-Fried.
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