Last Updated on November 24, 2022 by Bitfinsider
Sam Bankman-Fried explains to employees the causes of FTX’s financial crisis and consequent insolvency. He essentially supports the information released by media outlets during the collapse of the exchange, identifying the crypto market decline as one of the factors contributing to a decrease in the value of FTX’s collateral assets. According to the former CEO, November’s “run on the bank” helped lower the exchange’s collateral to approximately $9 billion, with $8 billion in liabilities.
SBF states, “I never intended for this to happen.” “I was unaware of the entire amount of the margin position and the degree of the risk posed by a hyper-correlated market crash.”
Bankman-Fried describes his role in the catastrophe as a failure of oversight, stating that he should have been “more wary of huge margin positions” and had better systems in place to monitor and simulate bank runs and crashes. He intends to “make amends” to the impacted team members, but appears to regret the actions that led to FTX’s bankruptcy.
SBF states, “Perhaps there is yet a possibility to preserve the company.” “I believe billions of dollars in real interest from new investors might be used to make customers whole. But I cannot guarantee anything because it is not within my control.”
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