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Following an replace from FTX debtors concerning the $5.5 billion found by directors throughout an investigation, former FTX CEO Sam Bankman-Fried (SBF) took to Twitter to share a weblog publish from his Substack e-newsletter. SBF acknowledged that the presentation printed by litigation agency Sullivan & Cromwell is “extraordinarily deceptive” and that FTX US is solvent and “all the time has been.”
SBF Claims Misrepresentation by Litigation Agency, Twitter Critics Doubt Solvency
Sam Bankman-Fried (SBF) is offering further data in response to the latest press launch and 20-page presentation doc issued by FTX debtors and present restructuring directors. The press launch reported that investigators discovered $5.5 billion in liquid property. In response, SBF posted a new blog on his Substack e-newsletter and stated on Twitter, “FTX US is solvent, because it all the time has been.” The weblog publish echoes this assertion and asserts discrepancies between Sullivan & Cromwell’s (S&C) reporting and SBF’s spreadsheet.
He disputes the assertion within the presentation that FTX US has a “shortfall” and maintains that FTX US is just not bancrupt. “S&C claims that FTX US has a shortfall,” SBF stated in his newest weblog publish. “That declare is fake. Primarily based on S&C’s personal information supplied in the identical courtroom presentation, FTX US had roughly $609 million of property ($428 million in financial institution accounts, plus $181 million in tokens) backing roughly $199 million in buyer balances. FTX US was solvent when it was turned over to S&C, and virtually actually stays solvent right now.”
Regardless of SBF’s claims, a number of individuals on social media mocked the FTX co-founder and particularly criticized his Excel spreadsheet. “Bro typed out a few numbers in 5 minutes considering it’s gonna be his get out of jail free card,” one individual tweeted in response to SBF’s newest weblog publish. “Good Excel sheet {that a} 5-year-old may make — LOL — Means nothing. Anyone shut this dude up endlessly,” one other individual wrote. SBF’s claims have been met with skepticism and his declarations didn’t look like convincing to many.
Lacking Funds, Lack of Auto-Liquidation Points, and ‘Questionable FTX US Redemption System’ Stay Unaddressed by Former FTX CEO
A variety of individuals questioned why SBF didn’t touch upon the $10 billion in lacking funds and as soon as once more, his weblog publish didn’t handle the accusations made within the presentation. For instance, following SBF’s final weblog publish, Bitmex co-founder Arthur Hayes criticized the FTX co-founder for not addressing the lack of auto-liquidation related to Alameda Analysis. The most recent presentation from FTX debtors claims “Alameda Analysis and a small group of people had the power to take away property from the change.” Moreover, the elimination of funds was by no means recorded on the corporate’s ledger, and the funds allegedly derived from FTX change prospects.
SBF didn’t handle that particular topic in any respect. It’s absent from his argument in opposition to Sullivan & Cromwell’s presentation. Individuals on Twitter introduced this as much as SBF on different Twitter threads concerning the topic, as SBF’s tweets are set to “personal” mode and can’t be commented on. “This doesn’t clarify the allegations of embezzlement to which your colleagues have pleaded responsible,” one individual on Twitter tweeted in response to SBF’s newest claims. One individual told the media that SBF’s claims look like intentional “misdirection” and “doubtlessly for authorized/protection functions.”
It’s secure to say that Bankman-Fried’s claims and up to date weblog posts will not be being taken severely, and his Excel spreadsheet technique is just not convincing most of the people. Some individuals puzzled if SBF was “presumably tweeting in opposition to the recommendation of authorized counsel.” The most recent weblog publish was not a lot totally different from the final publish SBF wrote, as they each fail to elucidate quite a few issues raised by Bankman-Fried’s co-workers — former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang. Moreover, proof has emerged about how “merchants could have used a questionable FTX US redemption system” for Solana-bridged property.
Conor Rogan, a director at Coinbase who regularly tweets about onchain actions, stated this redemption scheme may complicate the chapter course of. “From November ninth till withdrawals have been halted a number of days later, merchants could have used a questionable FTX US redemption system to funnel [tens of millions] out of the change,” Rogan said. “This might complicate chapter proceedings and additional name into query FTX-FTXUS separation claims,” he added. Rogan discussed an artificial Solana-based bitcoin (BTC) token known as “sollet (soBTC)” which broke its peg when FTX’s troubles have been engulfed in flames. Regardless of the monetary points, FTX US nonetheless processed sollet redemptions on a 1:1 foundation.
The redemptions nonetheless occurred whereas sollet was trading for a lot decrease than BTC’s spot worth, and Rogan believes the “poisonous redemptions” or “swapping unbacked ETH and BTC” led to the potential lack of over $40 million. “FTX US would presumably have 1,700 actual BTC, as an alternative of 1,700 soBTC value near-zero on the open market right now,” Rogan tweeted. The onchain researcher noted, nevertheless, that the proof was his personal “speculative findings primarily based on analysis into FTX US’s Solana handle and discussions with members of the Solana group.” Notably, following Rogan’s Twitter thread, SBF determined to answer to the claims made.
“I’m pretty assured that FTX US’s extra money available is way bigger than the dimensions of the wrapped asset concern to the extent there may be one,” SBF wrote in reply to Rogan’s Twitter statements.
As soon as once more, SBF’s remark concerning the sollet (soBTC) concern was met with skepticism and criticism shortly after he printed the tweet. “You simply stated they have been solvent. Now you’re ‘pretty assured?’” one individual asked the FTX co-founder. “I’m pretty assured you’ll spend a very long time in federal jail,” one other particular person tweeted. Rogan’s Twitter thread and SBF’s response additional spotlight that folks don’t appear to be accepting the previous FTX CEO’s statements. “No person believes something you say and so they by no means will,” one individual replied to SBF’s sollet commentary on Twitter.
What are your ideas on Sam Bankman-Fried’s claims of FTX US’ solvency and the accusations of embezzlement and lacking funds? Depart your feedback under.
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