Former FTX CEO Sam Bankman-Fried has released an extensive Substack article detailing how his crypto empire collapsed, once again pinning the blame on rival crypto exchange Binance.
On Thursdays, Bankman-Fried published A Substack article titled “FTX Pre-mortem Overview” where he talks in detail about his group of crypto-related companies and how they failed. Among other things, the disgraced crypto boss continued to argue that Binance had a big role to play in the downfall of his businesses.
“In November 2022, an extreme, quick, targeted crash by the CEO of Binance rendered Almeida insolvent,” the SBF said.
The SBF also claimed that Binance CEO Changpeng Zhao (CZ) launched a “highly effective month-long PR campaign against FTX” that lasted a few days in November, culminating in the exchange’s bankruptcy.
SBF’s claims come despite the fact that the new FTX management has accused it of misappropriating customer funds. On Wednesday, FTX attorney Andrew G. Dietderich said in federal court in Wilmington, Delaware, that Almeida spent a lot of money on hotels and parties.
“it [Alameda] Bought planes, built houses, gave parties, gave political donations. It made personal loans to its founders. It sponsored the FTX Arena in Miami, a Formula 1 team, League of Legends, Coachella and many other businesses, events and personalities.
John Ray III, the new CEO of FTX, has Guilty SBF and other FTX officials of incompetence, inexperience and sloppy bookkeeping. He said in mid-December that FTX collapsed because of “concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals”.
SBF also claimed that its crypto exchange as well as trading firm Alameda Research were highly profitable in 2021, but things started to turn sour last year following a string of events starting with the collapse of Terra and 3AC, and asset values plummeted. was helped from nearly drowning. Every major token.
“FTX International and Alameda were legitimate and independently profitable businesses in 2021, each earning billions,” he said, adding that Alameda then lost “about 80 percent” of the value of its assets in 2022.
As mentioned, Bankman-Fried was arrested Last December, US prosecutors in the Bahamas formally filed criminal charges against him. He was eventually extradited to the US where he was later released from prison. posting a $250m bond in a New York court.
The new FTX management recently revealed that they have recovered over $5 billion In cash and liquid assets that can be used to repay creditors. Noting this, the SBF said that FTX International has “many billions of dollars in assets,” while stressing that “FTX US is fully solvent and always has been.”
Notably, the post does not address the criminal charges filed against SBF or the guilty pleas entered by former FTX and Alameda executives, specifically FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison.
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