Sam Bankman-Fried says he's 'deeply sorry' for the collapse of FTX

In a newly penned letter by Sam Bankman-Fried, the former CEO of FTX, he outlines his role in the collapse of what was the world's second-largest exchange.

Sam Bankman-Fried says he's 'deeply sorry' for the collapse of FTX
Published Nov 24, 2022 3:46 AM CST   |   Updated Thu, Nov 24 2022 5:11 PM CST
2 minutes & 41 seconds read time

Sam Bankman-Fried recently penned a letter to FTX employees apologizing for the collapse of the company. This letter has managed to get out to the media.

Sam Bankman-Fried says he's 'deeply sorry' for the collapse of FTX 01

Cointelegraph reports that it has read a copy of the letter Sam Bankman-Fried (SBF) dated November 22, the former FTX CEO explains what led to the liquidity crunch that resulted in declaring bankruptcy, the accusations about him in the media via leaked text messages, and other factors that have influenced where the exchange is today. According to SBF, one of the main factors that caused the bankruptcy was the market downturn that caused the assets FTX was holding to rapidly decrease in value, which was quickly followed by a "run on the bank".

The former CEO writes that "I never intended this to happen", and that he wasn't aware of the "full extent of the margin position, nor did I realize the magnitude of the risk posed by a hyper-correlated crash." SBF continued and described his personal role in the collapse of the company as a complete failure in oversight, and that he wishes he was "more skeptical of large margin positions". Furthermore, SBF wrote that he should have had procedures in place based on simulated crashes/bank runs similar to what effectively killed the cryptocurrency exchange.

Notably, SBF wrote that just a month before the collapse, he believed that FTX had been "thriving", and that means the company still "had value". Additionally, SBF seems to regret filing for bankruptcy as the former CEO explains that the company could have "likely raised significant funding", adding that potential interest of billions of dollars of funding came across his table approximately eight minutes after he signed the Chapter 11 bankruptcy documents.

SBF resigned as CEO of FTX the same day he filed for bankruptcy, and according to SBFs letter, the former CEO suggests there is still a "chance to save the company" as he believes there are billions of dollars of genuine interest from new investors that could go to making customers whole. However, SBF knows his limitations now that he has resigned, with the disgraced CEO writing in his letter that he "can't promise you anything" as it's "not my choice".

In other FTX-related news, Amazon has already scooped up the sequence of events leading up to the collapse of FTX for a TV series that will be created by the Russo Brothers, according to recent announcements. Additionally, Elon Musk has commented on the rumors that SBF owns a $100 million stake in Twitter.

Buy at Amazon

H HYFOL Men's Graphic T-Shirts USA Flag 100% Cotton Short Sleeve

TodayYesterday7 days ago30 days ago
$12.99$12.99-
* Prices last scanned on 11/24/2022 at 5:10 pm CST - prices may not be accurate, click links above for the latest price. We may earn an affiliate commission.
NEWS SOURCE:cointelegraph.com

Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science and space news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

Newsletter Subscription

    Related Tags

    Newsletter Subscription
    Latest News
    View More News
    Latest Reviews
    View More Reviews
    Latest Articles
    View More Articles