SBF deeply regrets the collapse of FTX

SBF deeply regrets the collapse of FTX

Disgraced FTX founder Sam Bankman-Fried told former employees he was “deeply sorry” about the implosion of his crypto exchange – but continued to point the finger at the company’s bankruptcy filing and insisted he had the platform could save if he had had enough time.

“I am deeply sorry for what happened. I’m sorry about what happened to you all,” Mr Bankman-Fried – who has reportedly bought hundreds of millions of dollars worth of expensive property in the Bahamas, although he claims to defend “effective altruism” – told his staff in the letter. New York Post reports.

“I didn’t want that to happen and I would give anything to go back and do things all over again,” the 30-year-old wrote.

“You were my family. I lost that and our old home is an empty warehouse full of monitors. When I turn around, there’s no one left to talk to,” he said.

The letter was posted by a staff member on FTX’s internal Slack channel. Mr. Bankman-Fried has resigned as CEO and is no longer employed by the Company CoinDesk.

FTX attorneys on Tuesday told a Delaware bankruptcy judge that “a significant amount of assets have either been stolen or are missing.”

FTX filed for protection in the US after traders pulled $6 billion ($8.9 billion) from the platform in three days and rival exchange Binance abandoned a bailout deal. The collapse left an estimated one million creditors with billions of dollars in losses.

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During this week’s bankruptcy hearing, an attorney for FTX told the court that Mr. Bankman-Fried ran the company as his own “personal fiefdom.”

New FTX CEO John Ray, who took over when the company filed for bankruptcy, also accused Mr Bankman-Fried of colluding with Bahamian regulators to “undermine” the US bankruptcy case and move assets overseas.

The FTX founder, who is said to be under investigation by authorities in the US and his home base in the Bahamas, did not address allegations that client funds from sister company Alameda Research, run by his ex-girlfriend Caroline Ellison, were used to to make risky bets.

In his letter, Mr. Bankman-Fried instead continued to insist that he had a way out of the mess, writing to his staff: “Potential interest in billions of dollars in funding came about eight minutes after I signed the Chapter 11 documents. Combined with that money, the billions of dollars of collateral the company still held, and the interest we had received from other parties, I think we could have probably given great value back to customers and saved the business. I believe there is billions of dollars of genuine interest from new investors that could help bring customers back to health.”

Mr. Bankman-Fried wrote in the letter that cryptocurrency’s fall in value halved FTX’s collateral to about $30 billion ($44.5 billion). The company’s liabilities were valued at US$2 billion (AU$3 billion).

When cryptocurrencies failed to recover, collateral fell even further to around $9 billion (US$13 billion), according to Mr. Bankman-Fried, who bemoaned the “run on the bank” as account holders attempted to withdraw their deposits .

“I was not aware of the full extent of the margin position nor the extent of the risk posed by a hypercorrelated crash,” Mr. Bankman-Fried wrote.

The chain of events prompted FTX to file for bankruptcy protection, he claimed.

Meanwhile, Sequoia Capital, the well-known Silicon Valley venture capital firm, apologized to its fund investors after suffering a $150 million ($222 million) loss on FTX.

Sequoia’s partners told investors at a corporate meeting that they would improve their due diligence process for future investments The Wall Street Journal.

The company told its investors that it believes it was misled by FTX.

Nathaniel Whittemore, A CoinDesk The podcaster, who worked as FTX’s marketing director, said the company’s employees were unaware that Mr. Bankman-Fried used customer funds to pay off Alameda’s debt.

Whittemore also said employees had no idea their life savings were gone.

“You have to understand how devastated the average FTX employee was [after FTX failed to get Binance to bail it out]’ Whittemore said.

“Then not only did it look like they were out of work, but they might also be facing a total loss of their life savings.”

Whittemore’s comments were reported by insider.

This article originally appeared in the New York Post and is reproduced with permission

Read related topics:cryptocurrency

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