SBF’s Apology: Vows FTX to Make Customers Whole

Sam Bankman-Fried issued an official apology following the collapse of his cryptocurrency exchange.

He talked about making customers whole and finding a solution that would be best for all parties involved.

• FTX’s CEO took it to Twitter earlier on November 10 to shine some light on the current situation with his distressed crypto exchange.
• At first, he apologized for the entire fiasco, and said he should have done better as he had made at least two big mistakes, including failure to calculate his company’s liquidity properly.

6) My sense before:

Leverage: 0x
USD liquidity ready to deliver: 24x average daily withdrawals

Actual:

Leverage: 1.7x
Liquidity: 0.8x Sunday’s withdrawals

Because, of course, when it rains, it pours. We saw roughly $5b of withdrawals on Sunday–the largest by a huge margin.

— SBF (@SBF_FTX) November 10, 2022

• He took full responsibility for what transpired with FTX and promised to make users whole, which is his number one priority.
• After the failure of the Binance deal, SBF said his team is now focused on “doing everything we can to raise liquidity.”
• If the company manages to make users whole, then it will aim to do the same for investors and employees. However, SBF asserted that he cannot and does not make any promises they will succeed.
• He also noted that his other brainchild – Alameda Research – will stop trading crypto “one way or another.”
• As reported before, FTX began having liquidity issues after Binance said it will dispose of its entire FTT token stash after some discrepancies with Alameda’s balance sheet. You can see the entire timeline of what happened with FTX here.