Sam Bankman-Fried (SBF) again talked about the financial position of the FTXUS exchange and said that FTX was solvent.
Sam Bankman-Fried (SBF) is the former CEO & co-founder of the FTX exchange. He was 95% owner of FTX’s sister company Alameda Research, which was a crypto hedge fund manager. Allegedly, SBF funded Alameda Research with the FTX customers’ funds, without any consent of customers or disclosure. In early Nov 2022, the FTX exchange collapsed badly. On 11 Nov 2022, FTX filed for bankruptcy in a US bankruptcy court along with Alameda Research, FTXUS, including 100s of its affiliated companies.
In the past month, SBF claimed that FTX was always solvent. And now on 18 Jan 2023, he again talked about this thing and attached corresponding proofs to show the financial position of the platform.
SBF noted that S&C failed to include the $428 million bank balance.
Through the dedicated, Substack post SBF claimed that S&C is wrong about the financial position of the FTXUS exchange.
“These claims by S&C are wrong, and contradicted by data later on in the same document,” said Bankman-Fried. “FTX US was and is solvent, likely with hundreds of millions of dollars over customer balances.”
Last month, new FTX CEO Johan Ray III talked about this thing and said that it is the reality that FTXUS funds were separated from Alameda Research but the FTXUS funds had commingled with the FTX exchange.
Few experts noted that FTX bankruptcy leaders were able to show a maintained financial position of the FTXUS exchange but still they intermixed the funds of FTXUS & FTX exchange together to file bankruptcy, which was technically not wrong but that decision surely degraded the trust of US Crypto Investors over the regulatory potential & trust of the US agencies like SEC, CFTC, etc.