Speaking about the events that lead to FTX’s collapse, SBF expressed that it was a combination of multiple events. He said,
“the crash in the spring that took 50% out of asset values, combined with a hyper-correlated crash scenario this month in which simultaneously we saw a 50% decline in relevant asset prices over a two-day period, combined with a complete run on the bank on FTX (…)”
Additionally, SBF stated that there could have been a 50% chance for FTX had Binance’s CEO – Changpeng Zhao – not expressed concerns. He said,
“Things would certainly be a lot more stable and there’s a lot more ability to generate liquidity and there would still be too much margin in the system (…) I don’t know for sure I think like 50-50”
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