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“I F*cked Up,” Declares FTX’s Founder

According to a tweet from Bankman-Fried, FTX lacks the liquidity to accommodate customer withdrawals.
| Cryptopress
Updated: November 11, 2022

JUAN MENDE

According to Sequoia Capital, Bankman-Fried, 30, CEO of FTX crypto exchange, was ready to become the world’s first “trillionaire.” This week, FTX openly crumbled.

Three days before, the letter said that “a rival is attempting to use fake information against us,” presumably targeting Binance. Before removing it, he tweeted, “FTX is ok and assets are fine.”

Later, the biggest cryptocurrency exchange in the world, Binance, said that it would purchase FTX this week to rescue it from bankruptcy, but dropped out within 24 hours to do due diligence. Now, FTX has fallen.

Sam Bankman-Fried, CEO of the FTX cryptocurrency exchange, tweeted on Thursday that he “messed up twice” and “regrets” the collapse of the second-largest bitcoin exchange.

Due to a liquidity issue, Bankman-Fried tweeted that FTX has no cash to repay user withdrawals. Bankman-Fried attempted to add subtlety to his argument by claiming ignorance of the true nature of his dispute, despite the fact that this is common information.

“I messed up twice at the highest level,” he tweeted. He said that he was still finding things out. Due to a mix-up with my bank account, I first misinterpreted user margin. I anticipated a smaller sum.”

This fatal error taught Bankman-Fried a number of lessons, both specifically and generally. “I’m responsible for how awful it is,” he added later.”

The management of FTX has resigned, and according to Bankman-Fried, the company needs billions in financial aid to meet its obligations.

Wednesday night, Sequoia Capital emailed investors to explain why it was dumping its entire interest in FTX. The intricacies of this danger are unclear, but we have written off our entire investment based on our existing information.

Downgrading and shrinking

As a result of Bloomberg’s downgrades of Bankman-Fried net worth, FTX, and Alameda Research, Bankman-net Fried’s share price fell 95% to $1.

Bankman-Fried tweeted that Alameda had significant cash flow issues after saying it will “shrink its activities.” FTX is no longer operational, but U.S. investors may still use FTX.US.

Bankman-Fried is a notable proponent of “effective altruism,” which many affluent Silicon Valley residents feel pushes individuals to become wealthy in order to contribute to society. He has been described as an ambitious philanthropist who wears trousers “in front of Congress” in favorable newspapers.

Reimburses?

The surviving FTX group aims to reimburse customers who have not yet received their money due to cash flow concerns. Many parties, according to Bankman-Fried, have drafted letters of intent, term sheets, etc. The future is uncertain at best.

The long-term picture for the market remains unknown. “In any scenario in which FTX continues operating, its first priority will be radical transparency — transparency it probably always should have been giving,” he continued. “I will not be around if I’m not wanted.”

Now that scenario to continue operating has gone, presumably forever. 

© 2022 Cryptopress. For informational purposes only, not offered as advice of any kind.

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