Former CEO of FTX, Sam Bankman-Fried, denied allegations that the exchange had stolen its funds.
Reasons for the stock market crash, according to SBF, include Binance’s “attack”, Alameda’s weak security, and the general crisis in the crypto market.
Sam Bankman-Fried Talks About The Collapse Process
In a lengthy post on Substack, SBF denied stealing billions of dollars in assets and explained the reasons for the stock market crash.
The reasons for the collapse of FTX and Alameda, according to the SBF, are the deep crisis in the crypto market and the insufficient protection of Alameda.
“You didn’t steal money and I certainly didn’t hide billions of dollars.
Alameda lost money because it was not adequately protected during the crisis.”
While he claimed that the trading company failed to take action against market risk, he said he had not managed Alameda for the past few years.
SBF is currently facing federal fraud charges in the US. The former CEO, who was recently bailed out, now resides in his family’s California home by court order.
Although Sam Bankman-Fried denied the charges, Alameda executive Caroline Ellison admitted to the fraud charges and cooperated with the authorities.
In its article, SBF describes Binance’s announcement of withdrawal from Alameda in early November as an “attack” that initiated exits from the FTX exchange.
“November’s crash was a targeted attack on Alameda’s holdings, it didn’t happen due to broad market action. The measures taken by Alameda were not successful.”
SBF reiterated that FTX.US has the power to reimburse customers.
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