Sam Bankman-Fried, Co-Founder and former CEO of FTX has claimed in a tweet that his “one goal” is “to do right by customers.”
In the tweet, SBF expressed confidence that FTX has the assets to settle liabilities. He claimed Alameda Research had more assets than liabilities but they are not liquid. “Alameda had a marginal position on FTX Intl and FTX US had enough funds to compensate all customers.”
But tweets of SBF were frowned upon by the majority of the crypto community as shifted perception of reality. The bankruptcy suit revealed FTX and Alameda had liabilities of more than $10 billion.
Reports also exposed misuse of client funds and even alleged SBF had stealth backdoor to stash away customer funds to Alameda and falsify the companies’ financial statements. In the latest post on Twitter, SBF surmised the collapse of FTX was connected to “much leverage–more than I realized. A run on the bank and market crash exhausted liquidity.”
The disgraced founder asserted that the illiquid M2M assets of $9 billion are larger than the liquid asset deficit. FTX filed for Chapter 11 bankruptcy last Friday and admitted it owes money to more than one million creditors.
Questions are also being asked whether Bankman-Fried’s tweets were his stand or something aligned with the new CEO and bankruptcy attorney John Ray III. The hint looks clear that Bankman-Fried wants to raise more capital despite the bankruptcy filing.
Meanwhile, Alvarez & Marsal and law firm Sullivan & Cromwell have been appointed as the restructuring advisors of FTX. They are tasked with efforts to safeguard the remaining value of the bnkrupt crypto platform. FTX had an estimation of $32 billion at its peak times.
