Sam Bankman-fried, a Crypto Billionaire, Blames Himself for the Collapse of FTX

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Last Updated on November 11, 2022 by Bitfinsider

Sam Bankman-Fried of FTX tweeted on Thursday morning that he was “sorry” and “could have done better.” Additionally, Bankman-Fried revealed that he is dismantling Alameda Research, the trading firm he co-founded with FTX.

The post appears at a time when the former crypto industry leader is pleading for billions of dollars to stave off bankruptcy. This week, FTX experienced a precipitous decline in popularity. Earlier this year, the exchange was valued at $32 billion, but when rival exchange Binance backed out of a deal to acquire it, Bankman-Fried is once again looking for a buyer.

“I also should have communicated more recently,” Bankman-Fried added. “My hands were bound during the duration of the possible Binance deal; I was restricted in what I could say publicly. But it was my fault that we were there in the first place.”

The CEO of FTX also provided an update on the status of his troubled cryptocurrency exchange.

Excluding its U.S. business, Bankman-Fried’s operation has a bigger total market value of assets and collateral than customer deposits, but this is “distinct from liquidity for delivery, as the status of withdrawals demonstrates.”

Bankman-Fried writes, “The complete story is one I’m still developing in every detail, but on a high level, I screwed up twice.”

According to the CEO of FTX, his first error was improper internal labeling of bank-related accounts, which caused him to be “significantly off” in his estimation of users’ margin. I believed it to be much lower.

Sunday saw around $5 billion in withdrawals, which he describes as “the largest by a significant margin.”

According to Bankman-Fried, his top objective is “doing right by users.” According to him, he and the team are spending the week doing everything possible to increase liquidity.

He stated, “I cannot make any assurances in this regard.” However, I intend to attempt.

Additionally, the FTX head states that they are in discussions with a number of parties on next moves.

In a Thursday tweet thread, he vowed, “Every cent of that and the existing collateral will go directly to consumers, unless or until we’ve done right by them.”

“Following that, investors, both old and new, and personnel who fought for what was right for their careers and were not responsible for the blunders.”

Justin Sun, the founder of the cryptocurrency tron, tweeted around 10 p.m. on Wednesday that he was “working together a solution” with Sam Bankman-cryptocurrency Fried’s exchange FTX in order to “begin a route forward.”

Sun was vague about the arrangement’s specifics, but he stated that his team has been “working around the clock to prevent further deterioration” and that he was certain that the situation will be “manageable” as a result of the “holistic strategy” he was developing with his partners.

Though Bankman-Fried retweeted the message, it is unclear whether Sun intends to acquire FTX in a deal similar to the one announced earlier this week with Binance, or whether he is simply attempting to assist individuals who own the tron token on the struggling exchange.

It is also conceivable for the message to result in no action at all.

The Chinese-born billionaire was previously embroiled in a number of controversies and PR stunts. In 2019, he paid $4.6 million for a lunch with Berkshire Hathaway CEO Warren Buffett, then abruptly canceled the event. The lunch finally occurred in 2020.

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