Former FTX CEO letter to employees: “I’m remorseful”

Crypto Regulation
Former FTX CEO letter to employees: “I’m remorseful”

Former FTX Chairman has shown remorse and regrets his actions that led to the liquidation of the third largest crypto trading platform, FTX via a private memo. The apology which was meant to be a peace offering for his costly mistakes was shared by the erstwhile CEO early Wednesday morning. 

The erstwhile CEO’s position

Sam Bankman-Fried, the Managing Director and erstwhile Chairman of FTX, said in a recent memo to the organization’s staff that he “went black up when confronted with adversity” as his business failed.

In the statement, published privately on FTX’s Slack and acquired by CoinDesk, Bankman-Fried expressed his “profound regret” about what transpired and the implications it had on the staff of the business.

He avoided questions on claims that FTX used client and business cash to support Bankman-Alameda Fried’s Survey, that Alameda was excluded from FTX’s standard insolvency procedure, or whether Alameda allegedly lent money to FTX executives, notably himself.

“I could very well sacrifice almost everything to be allowed to go back to the past and alter events as I had no intention to allow any of this to occur. My family was you. That’s also gone, and the place where we formerly lived is now a panel store. There is no nobody left to communicate with when I swing back.”

In response to criticism, disclosures, as well as the Binance [statement of desire to buy FTX], he claimed, “I stiffened completely and did nothing.”

This summer, FTX owned $2B in debt and about $60B in security, however, a financial fall caused the worth of the securities to be cut in half, as per Bankman-Fried.

What figures say

Due to priming effects and “repeated washings up” of loans in the sector, FTX’s securities also became valued at about $25B, despite an increase in his debts to $8B.

He investigated the feasibility of the security at $17 million at the time. A subsequent drop in November “leading towards another approximately 50 percent decline in the overall worth of security within a relatively brief period.”

Nearly $8B in security was lost during the liquidity crisis, which Bankman-Fried attributed to “assaults” in November, he claimed.

Due to various prior currency transactions made until FTX had financial balances, which further appeared apparent as we hastily pulled pieces jointly that the stake was greater than what it appeared to be based on managers and community managers, he explained. 

“Neither the enormity of the dangers presented by a short-tempered collapse nor the full closure of the profitability stance was realized by me.”

He claimed that Bankman-Fried “can’t grasp the complete nature of the valuation imbalance” or the danger posed by a connected collapse.

In principle, he claimed, “the financing and aftermarket acquisitions were being employed to make investments in the firm, especially procuring out Binance, never for significant sums of household expenditure.”

Complaints about client resources being transferred from FTX to Alameda, which then are now presented again all through the firm’s preliminary insolvency meeting early on Tuesday, also weren’t addressed by Bankman-Fried.

According to “an enormous degree of orchestrated effort,” FTX declared bankruptcy, and according to Bankman-Fried, the company did so “unwillingly.”

He wrote in the report on Tuesday that:

“There is some possibility to preserve the enterprise. I think there are many billions of dollars in a great deal of commitment from prospective shareholders that may be utilized to compensate clients. But since I have no control over it, I can’t guarantee that almost everything will.”

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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.