Sam Bankman-Fried, former CEO of FTX, admits he was overly confident and careless, causing the entire system to collapse.
In two days 16-17/11, Sam Bankman-Fried (SBF) posting a 32 tweet to talk about the money trading floor you started. He said that he developed FTX and turned it into a massive machine worth three billion USD’s fast.
“I appear on the cover of all the magazines. FTX is the baby of Silicon Valley, which makes us so confident and careless, Bankman-Fried writes in the 20 tweet.
Sam Bankman-Fried appears outside American National building in January: AP
According to the founder, FTX has a billion dollars in 5-billion dollars to use as leverage, 20-billion USD values via FTT. Therefore, when the user uses money for withdrawal and FTT lost near the 80%value, everything is out of control by no other assets.
About 25%the assets on the floor are pulled out every day. Many problems are bigger than what I realize. Turns out I’m wrong, so no, no, no, no, no, no, it’s 5 USD’s about a billion USD. When it’s not one’s down at all.
He felt the FTX’s assets were fine until two days before CEO Binance Changpeng Zhao (CZ) said the floor was missing. He was desperate and looking for rescue because of a crisis of payment. Also, former CEO FTX said he was trying to collect money for his clients, but not to mention how much he’s been getting and taking it from them.
Before that, FTX’s lawyers said the floor had about a million creditors, identified as hedges and people who sent money on FTX floor. Bankman-Fried leaves the CEO of FTX into 11/11 and his successor is John J. Ray III.
They call for a hearing.
According to CNBC, U.S. legislators include the chairman of the National Services Services Services Services of Maxine Waters and Congressman Patrick McHenry of North Carolina is calling Bankman-Fried and other directors of FTX to the 12-involved in this movement. Besides, the leader of Alameda Research, Binance, and some of the characters that influence other money could also be asked to appear at the hearing.
“The fall of FTX has caused bigger damage than a million users, many of them spent their entire life savings to invest, but it’s all gone for a minute,” Waters said. “Unfortunately, this incident is just one of the many examples of the way down of the years of money.”
In the meantime, McHenry also thinks Bankman-Fried needs to clarify what happened at FTX is as well as compensation for the casualties. “The user is being abandoned, the ecosystem in the attic,” you say.