- Sam Bankman-Fried apologized following the crypto exchange crisis, saying he should have done better and hadn’t been transparent enough.
- Aside from his “poor internal labeling of bank-related accounts,” the FTX CEO admitted he was “substantially” off the margin of users.
- Twitter users, however, disagree with the CEO’s comments.
- To save Bankman-Fried’s cryptocurrency exchange, the company is seeking a financial bailout.
In a recent Twitter post, FTX CEO Sam Bankman-Fried issued an apology concerning the ongoing crisis. He stated he should have done better.
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1) I’m sorry. That’s the biggest thing.
I fucked up, and should have done better.
— SBF (@SBF_FTX) November 10, 2022
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In his apology, he admitted that he hadn’t been transparent enough and didn’t communicate duly at the inception of the crisis. However, one Twitter user recalled when the CEO stated FTX was fine, despite the fact that it very much wasn’t, and later deleted the post.
You know–communication was happening. You said FTX people WERE okay–and then you deleted the tweet.
Does someone else run your Twitter, or is it you?
As far as I can tell you are sorry for lying, and being caught. Remember–tweets that are deleted, are stored, still.
— Loydna (MentalHealthCheck
) (@loydna) November 11, 2022
SBF also talked about his “poor internal labeling of bank-related accounts” and maintained he was “substantially” off on his sense of users’ margin.
5) The full story here is one I’m still fleshing out every detail of, but as a very high level, I fucked up twice.
The first time, a poor internal labeling of bank-related accounts meant that I was substantially off on my sense of users’ margin. I thought it was way lower.
— SBF (@SBF_FTX) November 10, 2022
Replying to this, another user recalled the recent report from the Wall Street Journal highlighting that FTX had lent $10 billion of the $16 billion in customer funds to Alameda research.
WSJ reports that $10B was lent to Alameda. https://t.co/Pr8XYMul2I
— Sigtrap (@killminus5) November 11, 2022
Effort to Rescue the Situation
SBF divulged that his priority at the moment is doing right by users. Currently, he is seeking a financial bailout to rescue the cryptocurrency exchange from its decaying situation. He refused to give a more positive headlight, stating he “can’t make any promises” but will try and do “anything” to make it work.
Previously, FTX and its CEO had turned to Binance, Kraken, and the founder of Tron, Justin Sun, for assistance. While Binance initially expressed interest in acquiring the firm, it later canceled the deal, citing the mishandling of user funds and investigations by the authorities.
However, recent reports from Bloomberg anchor Tom Mackenzie indicate Tron Founder Justin Sun is ‘ready’ to provide assistance to the exchange by investing billions in it, but they “need to do full diligence.”
Further, FTX has also reached an agreement with Tron to establish a system to allow holders of TRX, BTT, JST, SUN, and HT to swap assets from FTX 1:1 to external wallets.
Bankman hopes this is the beginning of finding ways to offer liquidity to users.
We hope this is just step one: beginning to find ways to bring liquidity to users.
That is the core thing that I am fighting for right now, and will continue to fight for in whatever ways I can. https://t.co/pzTJBsytVS
— SBF (@SBF_FTX) November 10, 2022
He also explained that recent events are related to the international subsidiary of the cryptocurrency exchange, but funds of FTX.US users are fine.
On the Flipside
- The FTX CEO earlier intervened for firms that suffered the harsh consequences of the crypto winter. But, in an unprecedented turn of fate, SBF himself is now in dire need of an intervention.
Why You Should Care
In the past, the CEO of FTX attracted massive attention as a prominent figure in the crypto space, but recent events raised questions about his intentions. These proceedings may force the authorities to bring rigid regulations that could impact the growth of crypto firms worldwide.