1. Sam Bankman-Fried (SBF), the founder and former Chief Executive Officer of bankrupt FTX Derivatives Exchange, has maintained in a Thursday morning Substack letter his innocence regarding the allegation of stealing users’ funds.
2. SBF explained that the collapse of FTX and its sister trading firm Alameda Research is a function of the broader turmoil that the financial industry has recorded over the past year.
3. SBF acknowledged that Alameda Research failed to hedge its market exposure and by implication, the firm lost approximately 80% of its value over that time span.
Sam Bankman-Fried, the founder and former Chief Executive Officer of bankrupt FTX Derivatives Exchange, has maintained his innocence with respect to stealing the trading platform users’ funds as alleged by Federal Prosecutors. This was made known in a Thursday morning Substack letter released by SBF.
In the letter, the disgraced CEO argued that his comment bordered on the insolvency of FTX and its sister trading firm Alameda Research being a function of the broader turmoil that the financial industry has experienced over the past year. SBF noted that over the course of 2021, the Net Asset Value of Alameda Research grew to $100 billion with $8 billion of net borrowing (leverage), and $7 billion of liquidity on hand.
Unfortunately, SBF acknowledged that Alameda Research failed to hedge its market exposure and by implication, the firm lost approximately 80% of its value over that time span. As a result, the firm failed to meet the obligations of its debtors and was forced to declare bankruptcy.
SBF has maintained his innocence in the letter and has denied any wrongdoings. He has also stated that there was no evidence of him stealing the users’ funds from the platform. He has also noted that he is currently cooperating with the authorities and is doing his best to ensure that the users of FTX and Alameda Research are not adversely affected by the collapse of the two firms.
In conclusion, SBF has maintained his innocence and has denied any wrongdoings in the letter. He has also noted that he is currently cooperating with the authorities and is doing his best to ensure that the users of FTX and Alameda Research are not adversely affected by the collapse of the two firms.