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Sam Bankman-Fried claims, “I didn’t steal funds” in a brand new publish on Substack

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Nearly till the second of his arrest within the Bahamas a month in the past, Sam Bankman-Fried’s (SBF) post-FTX collapse media tour included days of back-to-back Twitter Areas and Zoom calls. Now, prime executives of corporations in his crypto empire have pleaded guilty to criminal fraud charges of fraud and money laundering and are cooperating with the prosecution, whereas Bankman-Fried — free on a $250 million bond and still giving interviews — pleaded not guilty to eight related costs and has adopted up by launching a e-newsletter whereas he awaits trial.

Published this morning on Substack, the “FTX Pre-mortem Overview” message from the previous CEO says, amongst different issues, that “I didn’t steal funds, and I actually didn’t stash billions away.”

Within the prolonged publish (and a few follow-up tweets), he tries to put out a case that FTX and Alameda Analysis “had been each legitimately and independently worthwhile companies in 2021, every making billions.” Given just a few extra weeks, he asserts, FTX Worldwide might have survived the disaster. The villains on this model of the story embody lead FTX chapter counsel Sullivan & Cromwell (S&C) together with Ryne Miller, the final counsel of FTX US who joined the corporate in 2021 after a sting with S&C.

Bankman-Fried writes, “S&C and the GC had been the first events strong-arming and threatening me into naming the candidate they themselves selected as CEO of FTX–including for a solvent entity in FTX US–who then filed for Chapter 11 and selected S&C as counsel to the debtor entities.”

SBF in the end blames the autumn of his empire on a sequence of market crashes that initiated the so-called “crypto winter” final yr for dropping the worth of Alameda’s web property — by his estimation going from $99 billion firstly of 2022 to $10 billion by October.

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Uncover extra from SBF’s Substack.
Picture: Substack

Then got here the tweet by Binance CEO Changpeng “CZ” Zhao that initiated a run of FTX’s FTT token, which he paints as a “focused assault on property held by Alameda, not a broad market transfer.” It’s an attention-grabbing place for him to take, contemplating a report by The New York Times stated prosecutors are investigating the chance that he and Alameda manipulated buying and selling that set off the crash of TerraUSD and Luna cryptocurrencies earlier this yr.

“And so, as Alameda grew to become illiquid, FTX Worldwide did as properly, as a result of Alameda had a margin place open on FTX; and the run on the financial institution turned that illiquidity into insolvency,” Bankman-Fried writes.

The publish doesn’t handle the responsible pleas entered by his former pals and enterprise associates, particularly fellow FTX co-founder and former CTO Zixiao “Gary” Wang and former Alameda Analysis CEO Caroline Ellison.

At its launch, the Substack provided followers a possibility through a subscription of as much as $150 per yr for “founding” members. SBF has since turned that possibility off.



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