The founder of bankrupt crypto exchange FTX says that he’s trying to find a way to make his former customers whole.
In a lengthy cryptic thread on Twitter, Sam Bankman-Fried says that he thought that FTX and its affiliated trading firm Alameda Research had enough assets to cover their debts.
“To the best of my knowledge, as of post-11/7, with the potential for errors:
a) Alameda had more assets than liabilities M2M (but not liquid!)
b) Alameda had margin position on FTX Intl
c) FTX US had enough to repay all customers
Not everyone necessarily agrees with this.”
The 30-year-old started the series of tweets with the word “what”, which was followed by individual letters that spelled “happened”, perplexing much of the crypto space.
Bankman-Fried says he is meeting with regulators to do what is right for the customers. He also lays out a plan for rebuilding his collapsed firms, though it’s unclear as of yet if any of the plans are remotely possible.
“A few weeks ago, FTX was handling ~$10b/day of volume and billions of transfers. But there was too much leverage–more than I realized. A run on the bank and market crash exhausted liquidity. So what can I try to do? Raise liquidity, make customers whole, and restart.
I know you’ve all seen this, but here’s where things stand today, roughly speaking. [LOTS OF CAVEATS, ETC.]
And yeah, maybe that $9b illiquid M2M isn’t worth $9b (+$1b net).
OTOH–a month ago it was worth $18b; +$10b net.”
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