Former FTX chief govt Sam Bankman-Fried (C) arrives to enter a plea earlier than US District Choose Lewis Kaplan within the Manhattan federal courtroom, New York, January 3, 2023.
Timothy A. Clary | AFP | Getty Photos
His publish supplies his perspective on the collapse of FTX and his hedge fund Alameda Analysis, and consists of purported FTX and Alameda monetary metrics, caveated as “JUST AN ESTIMATE.”
At first of 2022, for instance, Bankman-Fried says he estimated Alameda’s complete web property at $99 billion. By October, he believed that his hedge fund’s web property had fallen to $10 billion. He pinned the collapse on a broader market downturn, even evaluating his FTT token’s efficiency to that of Tesla, bitcoin and the Invesco QQQ, an ETF that tracks the Nasdaq 100.
Bankman-Fried in contrast the efficiency of his change’s token towards the Invesco QQQ and different property in his Substack publish.
Chapter legal professionals, federal prosecutors and regulators have contradicted lots of the claims Bankman-Fried made in his publish.
Regulators and prosecutors allege that neither FTX nor Alameda had been wholly reliable companies however had been devices of Bankman-Fried’s fraud.
FTX’s restructuring officers have stated the companies confronted important and inexplicable money shortfalls after FTX filed for chapter in November.
The case towards Bankman-Fried was constructed with the help of his longtime executives Caroline Ellison and Zixiao “Gary” Wang, each of whom pleaded responsible to fees of fraud. Bankman-Fried’s publish didn’t acknowledge their cooperation with federal probes.
In his publish, Bankman-Fried additionally famous that different crypto companies have been “blown out.” He didn’t acknowledge that three of these companies — BlockFi, Genesis and Gemini —allegedly suffered due to FTX’s collapse.
Lots of his claims had been ones he is made earlier than, together with that FTX US remained solvent, that Alameda’s liquidity disaster was not attributable to misconduct however due to broader market turbulence, and that FTX Worldwide and Alameda had been wholly reliable, worthwhile companies.
The previous FTX CEO additionally pointed to a Nov. 6 tweet from Binance’s Zhao because the fruits of an “extraordinarily efficient months-long PR marketing campaign towards FTX.”
Zhao has denied these claims. “FTX killed themselves […] as a result of they stole billions of {dollars},” the Binance CEO tweeted in December.
On the finish of the publish, Bankman-Fried doubled down. “All of which is to say: no funds had been stolen,” the 30-year-old wrote.