Former FTX CEO Sam Bankman-Fried has largely denied the allegations in opposition to him in a ‘pre-mortem overview’ of the crypto trade’s insolvency.
In a Jan. 12 submit on Substack, Bankman-Fried claimed there was a path ahead for patrons of sure corporations beneath the FTX umbrella to be made complete following the agency’s chapter. According to the previous CEO, FTX US had been “absolutely solvent” on the time the agency filed for Chapter 11 chapter, with roughly $350 million in money readily available.
Bankman-Fried added that FTX International had roughly $8 billion in property on the time John Ray took over as CEO, and pledged to make use of “almost all” of his private property in an effort to reimburse customers. Following FTX submitting for chapter, the previous CEO claimed to have had solely $100,000 in his checking account, and later relied on his dad and mom to place up their residence for bail as a part of his felony case.
In regards to the allegations Alameda had entry to FTX consumer funds with out their data or consent — on the middle of the felony prices in opposition to him — Bankman-Fried denied any involvement:
“I didn’t steal funds, and I certainly didn’t stash billions away. Nearly all of my property had been and nonetheless are utilizable to backstop FTX prospects.”
— SBF (@SBF_FTX) January 12, 2023
Bankman-Fried pointed to regulation agency Sullivan & Crowell and the FTX US basic counsel as events who pressured him into naming John Ray because the CEO of FTX previous to the agency’s chapter, seemingly disrupting a path towards making affected customers “considerably complete.” He largely laid the blame for FTX’s chapter on the crypto market crash of 2022 and a “months-long PR marketing campaign in opposition to FTX” by Binance CEO Changpeng Zhao.
“As Alameda grew to become illiquid, FTX International did as nicely, as a result of Alameda had a margin place open on FTX; and the run on the financial institution turned that illiquidity into insolvency,” stated Bankman-Fried. “No funds had been stolen. Alameda misplaced cash as a result of a market crash it was not adequately hedged for–as Three Arrows and others have this 12 months.”
Related: FTX has recovered over $5B in money and liquid crypto: Report
Bankman-Fried has pled not responsible to eight felony prices in his case, together with alleged violations of marketing campaign finance legal guidelines and wire fraud. Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have already pled responsible to associated prices. SBF’s trial is scheduled to start in October.