Home CryptocurrencyAltcoin Sam Bankman-Fried “deeply sorry” for the FTX team letter meltdown

Sam Bankman-Fried “deeply sorry” for the FTX team letter meltdown

by SuperiorInvest

Former FTX CEO Sam Bankman-Fried, also known as SBF, reiterated the apology to exchange staff in a letter explaining the collapse.

According to a Nov. 22 letter reviewed by Cointelegraph, Bankman-Fried broke down the reasons behind FTX’s liquidity crisis and subsequent employee bankruptcy. He largely confirmed the information reported by the media during the collapse of the stock exchange, citing the decline of the crypto market as one of the factors leading to the decrease in the value of FTX’s hedging assets. The November “run on the bank” helped reduce the exchange’s collateral to about $9 billion, with $8 billion in liabilities, according to the former CEO.

“I never intended for this to happen,” he told SBF. “I didn’t realize the full extent of the margin position, nor did I realize the magnitude of the risk that a hypercorrelated crash presents.”

Bankman-Fried described his role in the disaster as a failure in oversight, saying he should have been “more skeptical of high-margin positions” and should have had more procedures in place to monitor and simulate bank crashes and runs. He said he planned to “make it up” to the affected team members, but appeared to regret the events that led to FTX’s bankruptcy:

“I believe that a month ago, FTX was a prosperous, profitable and innovative company. Which means FTX still had value, and that value could go towards making everyone more whole. We probably could have raised significant funds; The potential interest in the billion-dollar financing came about eight minutes after I signed the Chapter 11 papers.”

“There may still be a chance to save the company,” SBF said. “I believe there are billions of dollars of real interest from new investors that could go toward making customers whole. But I can’t promise you that anything will happen because it’s not my choice.”

Related: Sam Bankman-Fried Informs Investors: ‘We Are Overconfident and Careless,’ Claims $13 Billion in Leverage

SBF resigned as CEO of FTX on November 11 in the same announcement in which FTX Group filed for bankruptcy in the United States. Bankruptcy proceedings in Delaware County are ongoing, but the legal team representing FTX’s debtors said on Nov. 22 that the exchange’s assets they were still in danger cyber attacks. An unknown actor removed 228,523 ethers (ETH) from FTX on November 11.

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