Sam Bankman-Fried Apologizes For FTX Crisis

Sam Bankman-Fried has apologized for the crisis that has engulfed his financial empire and acknowledged that cryptocurrency exchange FTX does not have readily accessible funds to handle $5 billion in customer withdrawals. : “Sorry. That’s the biggest thing. I’m screwed, and I should have done better.” The heart of Bankman-Fried comes as one of the world’s largest cryptocurrency trading venues, FTX, is on the verge of collapse. The 30-year-old executive on Thursday said the exchange had only $400 million in readily tradable USD assets to cover the $5 billion buyback request that surged on Sunday. He believed right before the crisis that exchanges could withdraw an average of 24x US dollar liquidity per day. Bankman-Fried’s position, when his personal fortune was estimated at $24 billion a few months ago, raises new doubts about whether his clients will ever be complete. He said the value of the group’s assets exceeded customer deposits, but “liquidity is very diverse and very diverse.” It was done right by them,” he swore. Bankman-Fried’s troubles began late last week when crypto industry publication CoinDesk reported that a significant portion of the assets backing the executive’s trading house, Alameda Research, were in FTT, a coin issued by FTX. Changpeng Zhao, chairman of Binance, Bankman-Fried’s biggest rival, said on Sunday that his exchange will liquidate its FTT holdings. Bankman-Fried said Thursday that he plans to halt his trading at Alameda and he is ready to step down from FTX’s leadership position. Binance started trading to rescue FTX on Tuesday, but withdrew it after a day citing concerns about FTX’s business practices and an investigation report by a US regulator. An official familiar with the matter said the U.S. Securities and Exchange Commission (SEC) has expanded its investigation into FTX to include the platform’s cryptocurrency loan products and customer fund management. The acquisition plan was announced on Tuesday, the official added. The SEC also said on Thursday that it was reviewing the relationship between the US corporation FTX US.Bankman-Fried and FTX. Users of FTX.US, a legal entity separate from his main international exchange, are “okay”. Hours later, the FTX.US website announced that trading on the platform could be halted in a few days, urging users to close positions they wanted to close. “Withdrawals are open and will continue,” he added. “The FTX crisis has also hit prominent investors.” Venture capital firm Sequoia Capital has announced it will cut its $214 million investment in FTX to zero after a big hole in its balance sheet in recent days and cast serious doubts about the viability of FTX. “The recent liquidity crisis has posed a solvency risk to FTX,” Sequoia said in a note to fund investors on Wednesday. SoftBank, Tiger Global, BlackRock and other backers including hedge fund managers Paul Tudor Jones and Izzy Englander are also facing losses. ‘Too Crazy’: Customer Matters Crypto exchange FTX’s crisis has left thousands of customers preparing for losses, some outraged by company founder Sam Bankman-Fried. Users have been unable to withdraw funds for several days. The company website states, “Strongly notice[ing]“Users do not deposit money. “It’s crazy,” said 21-year-old Matthias, who said he had $1,700 left on the exchange. “FTX has a lot of followers and a great reputation. The whole situation will make encryption look more unstable overall, [decentralised finance] “I now have $2,300 left on the exchange,” said Shadan Shoeb, 21, from India, who started trading on FTX in April. “That’s all I’ve made in the last six months. . . i believed [FTX and Bankman-Fried] But everything seems to be lost.” Nikou Asgari Video: Bitcoin Mining: Is Watts Money? | FT entry
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