FTX Exchange founder and former CEO Sam Bankman-Fried (SBF) sent a letter to FTX employees today, and in the letter detailed changes in the amount of leverage positions, but did not respond to strong questions regarding the misappropriation of client funds, and the recent Other disclosures regarding him and FTX.
(Recap:The first day of FTX’s court session” Bankruptcy Lawyer: A large number of assets have been “stolen and missing”!Well-functioning business units will be sold）
(Background of the event:Justin Sun: Evaluating the purchase of FTX assets; Sequoia Capital apologized to investors for the “loss of 150 million magnesium”!）
rootAccording to Coindesk earlier today (23rd)informationSam Bankman-Fried (SBF), the founder and former CEO of the FTX exchange that has filed for bankruptcy reorganization, wrote an internal letter to FTX employees, which detailed the leverage amount of FTX.
SBF wrote in an internal letter shared on the exchange’s Slack group that he was deeply sorry for what happened and the staff, but did not respond to questions regarding the incident. FTX Embezzles Client and Company Funds to Support Alameda Research allegations, and recent allegations that Alameda had ownedThe “secret immunity” right that will not liquidate 、 Alameda Loans Up to $1.6 Billion to Three FTX Executives Including Himmultiple revelations.
I didn’t mean to let this happen and I would give anything to be able to go back and do things once more. You guys are my family but I lost my company and our old home (office) is now an empty screen warehouse. When I turned around, there was no one to speak to.
In the face of pressure, leaks and Binance [收購 FTX 的意向書]I was stunned and mightn’t say anything.
Today’s latest internal letter to FTX employees is issued by a current employee, because SBF has announced on the 11th the same day it filed for bankruptcy protectionresign CEO, now no longer has access to the company’s Slack.
Disclose FTX leverage amount
SBF also explained the amount of FTX leverage in the letter. He claimed that FTX still had regarding $60 billion worth of collateral and $2 billion in liabilities this spring, but the market crash following the middle of the year (Terra caused a series of subsequent explosions) means The value of the collateral is halved.
The “dry up” of credit in the cryptocurrency industry has further reduced the value of FTX’s collateral to $25 billion, even as its measured liability jumped to $8 billion.
Another crash in November “resulted in another roughly 50% reduction in collateral value in a very short period of time,” when collateral was valued at $17 billion.
Then, in early November, a run caused by the FTT revelations (caused by what SBF previously called an “attack”) saw another $8 billion in collateral value wiped off.
He commented on this, “When we were hastily putting everything together, it became apparent that the position was bigger than it showed on the admin/UI because there was old fiat currency before FTX had bank accounts Deposits. I didn’t realize the full extent of margin positions, nor the magnitude of the risk associated with a related crash. Loans and secondary sales are often used to reinvest in the business, including acquiring shares in Binance, rather than using for a large amount of personal consumption.”
Further reading:SBF: I can fall asleep and wake up by playing video games! Admits that Alameda’s leverage position on FTX is “bigger than imagined”
Reiterate regret filing for bankruptcy
In addition, SBF stated in the letter that he regrets applying for Chapter 11 bankruptcy reorganization. He told Vox reporters last week that the biggest mistake in life is to “file for bankruptcy”。In his letter on Tuesday, he said:
Maybe there is still a chance to save the company. I believe there is genuine interest from new investors to invest billions of dollars to make client funds complete. But I can’t promise you that anything will happen because it’s not my choice.
