Sam Bankman-Fried denies stealing FTX user crypto in new Substack post

Former FTX Chief Executive Officer Sam Bankman-Fried (C) arrives to enter a plea deal before US District Judge Lewis Kaplan at Manhattan federal courthouse, New York, January 3, 2023.

Timothy A. Clary | AFP | Getty Images

on thursday morning substack post, ftx Co-founder Sam Bankman-Fried denied allegations that he Stealed billions in user funds and suggested that binance It took a months-long effort by CEO Changpeng “CZ” Zhao to bring down FTX.

This is the first critical response to the Bankman-Fried federal charges That he directed an $8 billion fraud that destroyed his $32 billion crypto conglomerate. Earlier this month, Bankman-Fried pleaded not guilty to eight federal charges, including fraud and money laundering, and was released. $250 million recognizance bond, His trial will begin in October. Bankman-Fried is the subject of complaints Securities and Exchange Commission And this Commodity Futures Trading Commission as well.

His post provides his perspective on the collapse of FTX and his hedge fund Alameda Research, and includes what he calls “JUST AN ESTIMATES” of alleged FTX and Alameda financial metrics.

For example, by early 2022, Bankman-Fried says they project Alameda’s total net worth to be $99 billion. By October, he believed his hedge fund’s net assets had dropped to $10 billion. He pinned the decline on the broader market downturn, comparing his ftt token display for that Tesla, Bitcoin and Invesco QQQAn ETF that tracks Nasdaq 100,

In his Substack post, Bankman-Fried compared the performance of his exchange’s token against the Invesco QQQ and other assets.

bankruptcy attorneysFederal prosecutors and regulators have denied many of the claims made by Bankman-Fried in her post.

Regulators and prosecutors alleged that neither FTX nor Almeida were entirely legitimate businesses but rather instruments of Bankman-Fried’s fraud.

FTX restructuring officials have stated that businesses faced significant and inexplicable cash crunches following the FTX filed for bankruptcy in November.

The case was made against Bankman-Fried the assistance of their longtime officers Carolyn Ellison and Zixiao “Gary” Wang both pleaded guilty to fraud charges. Bankman-Fried’s post did not acknowledge his cooperation with the federal investigation.

In her post, Bankman-Fried also noted that other crypto firms have been “blown away”. He did not acknowledge that three of those firms – BlockFi, Genesis and Gemini –Allegedly suffered losses due to the collapse of FTX,

Many of his claims were ones he had previously made, including that FTX US remained solvent, that Alameda’s liquidity crisis was not caused by misconduct but by broader market turbulence, and that FTX International and Alameda were entirely legitimate. , were profitable businesses.

The former FTX CEO pointed to Binance’s Zhao’s Nov. 6 tweet as the culmination of a “highly effective month-long PR campaign against FTX.”

Zhao has denied those claims. “ftx killed itself […] Because they stole billions of dollars,” Binance CEO Tweeted In December.

At the end of the post, Bankman-Fried doubled. “All of which is to say: No money was stolen,” the 30-year-old wrote.

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