Now-bankrupt crypto exchange FTX’s CEO Sam Bankman-Fried, in a letter to staff, outlined the crash that FTX suffered. The recent turn of events didn’t stop Sam Bankman-Fried to apologize yet again with what seems like a false hope, saying, “Maybe there’s still a chance to save FTX”.
Finance journalist Liz Hoffman shared a letter that SBF purportedly sent to company staff, detailing the dire state of collateral and liabilities the exchange has. FTX and Alameda’s crypto holdings quickly lost value, falling from an estimated $60 billion to less than $10 billion. The fact that the collateral included FTT, the exchange’s own token, added to the issues.
However, SBF made some points that strongly suggest that the outcome could have possibly changed for FTX. The former crypto tycoon also stated that FTX could still have value and claimed that investors were prepared to invest billions at the time of the bankruptcy declaration.
He also accepted that the company could have raised significant funding; potential interest in billions of dollars in funding came in roughly eight minutes after he signed the Chapter 11(Bankruptcy) docs.
He then added that the company could have returned large value to customers and saved the business. He still claims that there are billions of dollars in interest from new investors but added that things are now out of his hands.
Although he has apologized repeatedly, the community does not accept his “good” intentions. Reportedly, Sam Bankman-Fried (SBF) quietly cashed out $300 million in personal stakes. Given that the market is observing the cryptocurrency market, the scenario seems suspicious as a whole.
