SBF Blames Market Conditions and Binance CEO for FTX Bankruptcy

The founder of ftx, Sam Bankman-Fried, has published his insight into the stock market crash in his new sub-site.

In the , titled "ftx pre-mortem overview," bankman-fried actually assimilated the collapse of his exchange with those of travel and celsius. He then establishes the link between the three main reasons for the failure of the exchange, he believes.

SBF’s Reasons for Implosion

First, the net asset value of Bankman-Fried’s Alameda Research rapidly expanded to roughly $100 billion over the course of 2021. Its balance sheet also reflected a net financing requirement of $8 billion compared to the $7 billion in cash available. Unfortunately, bankman-fried said alameda did not adequately cover its exposure to the market.

Cryptographic assets then tumbled in value during 2022, due to the turbulent global environment, said Bankman-fried. According to him, this resulted in a drop in the value of Alameda's assets of around 80%. Bankman-fried on several occasions refers to previous collapses, including three capital arrows, emphasizing the fact that the same market forces led to alameda peril.

Finally, bankman-fried says the insolvency of Alameda was brought about by "an extreme, quick, Targeted crash precipitated by the BINANCE CEO." He stated that this contagion subsequently spread to ftx, the collapse of which was akin to three capital arrows in its cascading effects.

FTX Insolvency

Despite these events, Bankman-Fried said that FTX retained over $8 billion in "variable liquidity assets" at the time of the bankruptcy declaration. He also said that ftx us remains fully creditworthy and should be able to return all client funds. 

The former CEO continues to claim to have received "many potential financing offers" that might have allowed ftx to survive. "I think I should.", ftx international had been given a couple of weeks, They probably could have used their illiquid assets and equity to get enough financing for essentially full customers," he added.

Finally, bankman-fried reiterates that it did not steal money from customers nor "hide billions away." instead, he intends to use his assets to make whole clients, however, in some circumstances. "I, for example, offered to contribute almost all my personal actions in Robinhood to clients," he said," if the chapter 11 team would honour my D.

Community Reacts to SBF

As expected, the crypto community was not impressed with Bankman-Fried’s excuses. A Twitter user objected to his repeated comparisons with other slumps. "Amazing to me that sbf_ftx is always comparing ftx to lenders such as blockfi, travel, and celsius, who have loaned client funds with poor risk management," said udi wertheimer.

Meanwhile, as the final commentary on his eight takeaways from the post Substack, another Twitter user noted a number of omissions. "The glaring omission in all of this (both from SBF and ) is that there is no indication as to what the total deposits of customers to FTX Trading were," said MetaLawMan.