FTX CEO Sam Bankman-Fried has recently broken his silence about what the stock market is going through. The famous entrepreneur stated that he was responsible for the collapse of FTX.
The one who turned the entire cryptocurrency market upside down FTX events continue to be on the agenda. Sam Bankman-Fried, founder and CEO of FTX, broke his silence about what happened today after Binance gave up on buying the crashing stock market.
The 30-year-old famous entrepreneur made a long post on Twitter. Bankman-Fried blamed himself for the financial problems and subsequent collapse at FTX. Crypto billionaire,I screwed up, çOk, I should have done better. Also, I should have been a lot more active these days.” In the post that he started with his statement, he talked in detail about what happened in the last days. All the explanations were as follows;
Here is the full statement from the CEO of FTX
“I am sad. That’s the biggest thing. I screwed up and should have done better.
Also, I should have contacted sooner. Frankly, my hands were tied during the potential Binance deal; I was not particularly allowed to make public statements. But of course, it’s my fault we were there in the first place
Here’s an update on where things are.
[BUNLARIN HEPSİ FTX INTERNATIONAL, ABD DIŞINDAKİ BORSA İLE İLGİLİDİR. FTX ABD KULLANICILARI İYİ DURUMDA! TÜM BU SAYILARA KABA OLARAK BAKIN. BURADA YAKLAŞIMLAR VAR.]
FTX International currently has a higher asset/collateral market cap than client deposits (moves with prices!). However, this is different from liquidity for delivery, as you can tell from the withdrawal situation. Liquidity varies widely, from very little to very small.
The full story here is one that I’m still trying to decipher every detail of, but as a very high level, I screwed up twice. For the first time, a bad internal labeling of bank-related accounts meant I was largely off on user marginwh. I thought it was much lower.
I felt before:
Leverage: 0x
Available USD liquidity: 24x average daily withdrawals
Real:
Leverage: 1.7x Available USD liquidity: 0.8x Sunday withdrawals
Because, of course, when it rains, it just rains (an idiom for mishaps). We saw roughly $5 billion in withdrawals on Sunday, it was by far the largest.
So I was wrong twice. Which tells me a lot of things I’m bad at, both privately and in general. My third stumbling block is not communicating well enough. I should have said more. Sorry I ran into things to do and couldn’t provide information to you all.
So we got to where we are now. It’s a bad situation and it’s my fault. I am sad.
Anyway, my first priority now is to do it right for users. I will do everything in my power for this, I will take responsibility.
Right now, we’re spending the week doing everything we can to increase liquidity. I can’t make any promises on this, but I’ll try. If it works, I’ll give everything I have.
There are several parties that we negotiate, such as LOIs, period charts. We’ll see how that turns out.
Every penny of this and current coverage will be given to users until they or we do the right thing, or even if they don’t. After that, it will be given to investors—old or new—and employees who fight for what is right in their careers and are responsible for nothing.
Because at the end of the day, I was the CEO, so I was responsible for keeping things running smoothly. I had to be on top of everything. I clearly failed at this. I am sad.
So what does this mean for the future? I am not sure. That depends on what happens next week. But here are some things I know.
First, one way or another, Alameda Research is ending the trade. They don’t do any of the weird stuff I see on Twitter, and they’re not a big deal at all. One way or another, they will soon no longer be trading on FTX.
Second, in any scenario where FTX continues to work, its first priority will be radical transparency – the transparency it should probably always deliver. As close to on-chain transparency as possible, so people know exactly what’s going on on-chain.
All stakeholders will have a hard view on FTX management. I won’t be around if I’m not asked. All stakeholders – investors, regulators, users – will play a big role in how it is run. Only trust.
But that’s not what matters right now – what matters right now is trying to do what’s right for customers. This much.
A few more comments:
This was about FTX International. US-based stock exchange FTX US, which accepts Americans, was not financially affected by this lousy show. It is 100% liquid. Each user can withdraw in full (modulo gas charges etc). There will be updates about the future.
At some point, I may have more to say about a partner with whom we have a certain exchange of ideas, so to speak. But you know, we’re the focus of criticism. So for now I will only say: you played well; you won.”
For what has happened with FTX lately;
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