Sam Bankman-Fried denies stealing FTX user crypto in new Substack post

Former FTX CEO Sam Bankman-Fried (C) arrives to file a petition before US District Judge Louis Kaplan in Manhattan Federal Court, New York, January 3, 2023.

Timothy A. Clary | AFP | Getty Images

His post provides his view on the collapse of FTX and his Alameda Research hedge fund, and includes purported financial metrics for FTX and Alameda, admonished as “JUST AN ESTIMATE”.

At the start of 2022, for example, Bankman-Fried says it estimated Alameda’s total net worth at $99 billion. By October, his hedge fund’s net assets were believed to have fallen to $10 billion. The crash commented on, even compared to, a broader market downturn FTT Token performance to perform TeslaAnd bitcoin and Invesco QQQthe ETF that tracks files Nasdaq 100.

Bankman-Fried compared the performance of its exchange token against Invesco QQQ and other assets in its position, Substack.

Bankruptcy attorneys, federal prosecutors, and regulators have contradicted many of the claims Bankman-Fried has made in office.

Regulators and prosecutors allege that neither FTX nor Alameda were fully legitimate businesses but rather Bankman-Fried fraud vehicles.

FTX restructuring officials said the companies faced a significant and inexplicable cash shortfall after FTX filed for bankruptcy in November.

The case against Bankman-Fried was built with the help of its longtime executives Carolyn Ellison and Zixiao “Gary” Wang, both of whom pleaded guilty to fraud charges. The Bankman-Fried publication did not acknowledge their cooperation with the FBI.

In his post, Bankman-Fried also noted that other crypto companies have been “blown away.” He did not acknowledge that three of those companies — BlockFi, Genesis, and Gemini — apparently suffered because of the FTX crash.

Many of his claims were those he had made before, including that FTX US remained solvent, that Alameda’s liquidity crunch was not due to misconduct but to broader market turmoil, and that FTX International and Alameda were fully legitimate, profitable companies. .

The former FTX CEO also referred to a November 6 tweet from Binance’s Zhao as the culmination of a “months-long, highly effective PR campaign against FTX.”

Zhao has denied the allegations. FTX killed themselves […] Because they stole billions of dollars,” said Binance CEO chirp in December.

At the end of the post, Double Bankman Fried. “All of this means that no money was stolen,” the 30-year-old wrote.

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