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.]
Liquid: -$8b
Semi: +$5.5b
Illiquid: +$3.5b
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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