On Nov. 10, 2022, FTX CEO Sam Bankman-Fried (SBF) addressed the crypto community in a thread posted to Twitter. SBF noted that he messed up and “should have done better” and also detailed that at some point he “might have more to say about a particular sparring partner.”
Sam Bankman-Fried (SBF) has discussed some updates concerning FTX in an apologetic Twitter thread published on Thursday. The FTX CEO said he “should have been communicating more very recently,” and further claimed his “hands were tied during the duration of the possible Binance deal.” In the update, SBF insisted that the update only concerned FTX International and not FTX US, and he further stressed that “FTX US users are fine.”
“FTX International currently has a total market value of assets/collateral higher than client deposits. But that’s different from liquidity for delivery–as you can tell from the state of withdrawals. The liquidity varies widely, from very to very little,” SBF detailed in his Twitter thread.
The FTX CEO added:
The full story here is one I’m still fleshing out every detail of, but as a very high level, I f***ed up twice. The first time, a poor internal labeling of bank-related accounts meant that I was substantially off on my sense of users’ margin. I thought it was way lower.
SBF also said that when it rains, it pours and on Sunday, the company saw $5 billion in withdrawals looking to be processed. He added that while he cannot make any promises, the company is “spending the week doing everything we can to raise liquidity.”
“There are a number of players who we are in talks with, LOIs, term sheets, etc,” SBF said. “We’ll see how that ends up,” he added. The FTX CEO also told the community that his quantitative trading platform Alameda Research was ending operations. “Alameda Research is winding down trading,” SBF remarked. “They aren’t doing any of the weird things that I see on Twitter–and nothing large at all. And one way or another, soon they won’t be trading on FTX anymore.”
While the thread was full of apologies and SBF saying many times that he messed up, the FTX CEO tweeted about a so-called sparring partner. “At some point I might have more to say about a particular sparring partner, so to speak,” the FTX executive stated. But you know, glass houses. So for now, all I’ll say is: well played; you won.”
According to a report published by Axios, two people familiar with the matter say FTX has attempted to engage with Kraken in a bid for rescue funding. Moreover, Japan’s Financial Services Agency (FSA) has ordered FTX to suspend operations immediately, citing that the regulator wants to protect creditors and investors from harm.
What do you think about the FTX CEO’s recent Twitter thread apologizing for his mistakes? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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