- CEO of FTX exchange states that FTX was a valuable entity a month ago.
- “FTX was the darling of Silicon Valley. We got overconfident and careless,” said Bankman-Fried.
- Every major decision they have made is related to acquiring more leverage – via deceptive fundraises: Jason Choi.
Sam Bankman-Fried, the CEO of the bankrupt FTX exchange, tweeted that FTX was a valuable enterprise a month ago. And during this period, he stated that the heads of the exchange were considered the paragons of running an effective company.
19) Once upon a time–a month ago–FTX was a valuable enterprise.FTX had ~$10-15b of daily volume, and roughly $1b of annual revenue. $40b of equity value.And we were held as paragons of running an effective company.— SBF (@SBF_FTX) November 16, 2022
Additionally, while reminiscing the glory days of FTX, Bankman-Fried in a follow-up tweet wrote that a portrait of him was always there on the cover of magazines. In his tweet, Bankman-Fried states:
I was on the cover of every magazine, and FTX was the darling of Silicon Valley. We got overconfident and careless.
Bankman-Fried accepted that the problems at FTX were brewing larger than he actually thought they were. In a tweet, he states that his estimates about the leverage were $5 billion, backed by ~$20 billion of assets.
However, it turns out the leverage was more than what he expected. In his tweet, Bankman-Fried states: “As it turned out, I was wrong: leverage wasn’t ~$5b, it was ~$13b. $13b leverage, total run on the bank, total collapse in asset value, all at once. Which is why you don’t want that leverage.”
Moreover, Bankman-Fried described his two goals in a tweet: “Clean up and focus on transparency and make customers whole.”
However, Jason Choi, an investor focused on Web 3.0 and the person who met Bankman-Fried before FTX started, said: “Alameda and FTX can best be summarized by SBF [Sam Bankman-Fried] FTX’s philosophy of betting big.”
Furthermore, he added that every major decision they have made is related to acquiring more leverage – via deceptive fundraises, financial engineering, and ultimately, outright fraud.
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