Sam Bankman-Fried (SBF) shared his point of view on the FTX bankruptcy incident.
Sam Bankman-Fried (SBF) is the former CEO & co-founder of the bankrupt crypto exchange FTX. At present, SBF is facing 10 fraud charges. Reportedly, SBF misused the FTX customers’ funds for personal benefits, which was the main cause behind the bankruptcy of the FTX exchange.
On 12 Jan 2023, SBF shared a post on substack to share FTX Pre-Mortem Overview. SBF said that FTXUS was fully backed with $350 million in hand cash, so FTXUS was fully solvent but still the team filed for bankruptcy along with FTX international.
SBF also stated that many FTX-affiliated companies were also solvent. The rest of the companies had exposure to the FTX to hold funds, so they fell under FTX bankruptcy.
FTX founder also said there was $8 billion in cash in the hands of FTX company, just after handing over the FTX CEO role to Johan Ray III. And also he confirmed that at that time he pledged to help the exchange financially with personal wealth so that FTX customers can get out of this situation.
Further, he added that he didn’t make a billion dollars from the exchange.
“I didn’t steal funds, and I certainly didn’t stash billions away. Nearly all of my assets were and still are utilizable to backstop FTX customers.”
On the Alameda Research bankruptcy, SBF explained that this Crypto company lost funds as a part of multiple Crypto & Stock market crashes in 2022.
In the last, SBF claimed that Binance CEO Changpeng Zhao (CZ) played the main role to crash the FTX ecosystem, through the FTX token (FTT) sell announcement.