Bankman-Fried Apologizes to FTX Employees, Details Amount of Leverage in Internal Letter

Nov 23,2022
KingData News: FTX founder and former CEO Sam Bankman-Fried "froze up in the face of pressure" as his company collapsed, he wrote in a new letter sent to employees of the company he once helmed. He did not address allegations that FTX diverted customer and corporate funds to prop up Bankman-Fried's Alameda Research, revelations that Alameda had an exemption from FTX's normal liquidation process or statements that Alameda had loaned funds to FTX officials including himself. According to Bankman-Fried, FTX had around $60 billion in collateral and $2 billion in liabilities this spring, but a market crash meant the collateral's value was halved. The "drying up" of credit in the industry further meant FTX's collateral was worth around $25 billion, though his liabilities measurement jumped to $8 billion. Another crash in November "led to another roughly 50% reduction in the value of collateral over a very short period of time," which he valued at $17 billion at the time. The bank run, caused by what Bankman-Fried termed "attacks" in November, reduced another $8 billion in collateral, he said.
A financial document disclosed in the media indicates that SBF's Alameda Research has a capital debt situation, with nearly half of its holdings related to FTT and Solana. On November 6, 2022, CZ stated that due to recent revelations, Binance will sell all FTT on its books. This indicator broadcasts updates on FTX-related events.