FTX founder and former CEO Sam Bankman-Fried launched his personal Substack e-newsletter as we speak, in a really uncommon transfer for somebody who was lately arrested and is going through eight counts of U.S. felony prices.
In a put up titled “FTX Pre-Mortem Overview,” Bankman-Fried maintains his innocence surrounding the collapse and bankruptcy of FTX, a cryptocurrency trade he based in 2019 that went on to lift $2 billion in funding and obtain a valuation of a staggering $32 billion.
I didn’t steal funds, and I actually didn’t stash billions away. Almost all of my property have been and nonetheless are utilizable to backstop FTX clients. I’ve, as an illustration, supplied to contribute almost all of my private shares in Robinhood to clients — or 100%, if the Chapter 11 staff would honor my D&O authorized expense indemnification.
When Bankman-Fried stepped down from FTX in November, Enron turnaround veteran John J. Ray III was appointed as the brand new CEO.
The 30-year-old former billionaire continues to insist that if he weren’t “pressured” to declare chapter that the corporate would have been capable of repay all its clients. He wrote: “There have been quite a few potential funding gives — together with signed LOIs put up chapter 11 submitting totaling over $4b. I imagine that, had FTX Worldwide been given a couple of weeks, it may possible have utilized its illiquid property and fairness to lift sufficient financing to make clients considerably complete.”
On January 3, Bankman-Fried pled not responsible to all eight counts of felony prices, which included wire fraud, conspiracy to commit cash laundering and conspiracy to misuse buyer funds, amongst others. Bankman-Fried may resist 115 years in jail if convicted on all prices. His trial date has been set for October 2, 2023.
Final month, a U.S. choose launched Bankman-Fried on a $250 million bail bond after he was extradited to America from the Bahamas. The bail package deal allowed Bankman-Fried to stay beneath home arrest at his dad and mom’ residence in Palo Alto, California.
Within the Substack, Bankman-Fried insisted that he had not been concerned in operating affiliated buying and selling firm Alamada — which was been the goal of hypothesis round whether or not or not FTX mishandled buyer funds — for a while, and that he was not conscious of its funds. He additionally went on to share what he described as “a document of FTX US’s stability sheet as of after I handed it off.”
Picture Credit: SBF Substack
He went on to say:
If FTX had been given a couple of weeks to lift the required liquidity, I imagine it might have been capable of make clients considerably complete. I didn’t notice on the time that Sullivan & Cromwell — by way of stress to instate Mr. Ray and file Chapter 11, together with for solvent firms like FTX US — would probably quash these efforts. I nonetheless assume that, if FTX Worldwide have been to reboot as we speak, there can be an actual risk of constructing clients considerably complete. And even with out that, there are significant assets out there for purchasers.
I’ve been, regrettably, sluggish to answer public misperceptions and materials misstatements. It took me a while to piece collectively what I may — I don’t have entry to a lot of the related knowledge, a lot of which is for a corporation (Alameda) I wasn’t operating on the time.
This isn’t the primary time the disgraced founder has taken to airing his ideas publicly. In November, he stated in a series of tweets that FTX Worldwide was looking to raise liquidity and was in talks with a “variety of gamers.” Then in December, he talked from an undisclosed location within the Bahamas with reporter Andrew Ross Sorkin for a DealBook occasion; a discussion that his authorized staff “very a lot” didn’t approve of, he instructed Sorkin with a boyish grin.
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