Sam Bankman-Fried (SBF) has released a written statement detailing his account of FTX and Alameda Research’s collapse, including approximations of each firm’s financials before it took place.
The former CEO maintains that FTX could have made customers “substantially whole” within a few weeks, had he not been pressured to file for bankruptcy.
The document, titled “FTX Pre-Mortem Overview,” began by pinning Alameda’s collapse on three causes. These included a large and mostly illiquid asset pile, a failure to hedge its exposure during the bear market, and Binance CEO Changpeng Zhao (CZ)’s tweet in early November.
Specifically, in early 2022, Bankman-Fried believes Alameda held roughly $100 billion in net asset value – only 7% of which was considered “liquid.” By November 10th, however, the firm had just $11 billion in assets left – only $3 billion of which were “liquid” – and a NAV of $0.
Nevertheless, Bankman-Fried claimed that FTX still held $8 billion in assets of “varying liquidity” before he stepped down as its CEO.
Furthermore, another $4 billion in potential support had reportedly been tabled by other groups in the form of signed letters of intent (LOIs) – though he believes these pathways have been abandoned by FTX’s new leadership.
“Even now, I believe that if FTX International were to reboot, there would be a real possibility of customers being made substantially whole,” he said.
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