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.”
SBF says it messed up, claims ‘hands were tied during duration of potential Binance transaction’
Sam Bankman-Fried (SBF) discussed Some updates related to FTX published on Thursday in the apologetic Twitter thread. The CEO of FTX stated that they “should have communicated more recently,” further claiming that their “hands were tied during the duration of the potential Binance transaction.” In the update, the SBF stressed that the update pertains only to FTX International and not FTX US, and they further emphasized 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.
FTX CEO couple,
The full story here is one I’m still going to elaborate on, but as a very high level, I’ve edited it twice. For the first time, poor internal labeling of bank-related accounts meant that I was far out of my understanding of users’ margins. I thought it was too little.
FTX Sees $5 Billion in Withdrawals on Sunday, SBF Shuts Down Alameda Research Trading, Bankman-Fried Talks About a Certain ‘Sparring Partner’
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 many players with whom we are in talks, LOIs, term sheets etc.,” the SBF said. “We will see how it ends,” he said. The CEO of FTX also told the community that their quantitative trading platform Alameda Research was ending operations. “Alameda Research is ceasing trading,” commented SBF. “They’re not doing any of the weird things I see on Twitter – and nothing big. 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 good Published by Axios, two people familiar with the matter say that FTX has attempted to tie up with Kraken to fund the hedge. In addition, Japan’s Financial Services Agency (FSA) has ordered FTX to immediately suspend operations, saying the regulator wants to protect creditors and investors from harm.
