The failure of the FTX exchange has been making headlines in the crypto space for over a week. As investors fear other exchanges will collapse, the platform’s former CEO is talking about a possible resurrection. Here’s how Sam Bankman-Fried (SBF) thinks the FTX exchange could still be saved.
SBF counts on new investors
A post by journalist Liz Hoffman on Twitter revealed that SBF allegedly wrote to FTX staff. In his letter, the former CEO notably spoke about the dismal state of guarantees and liabilities of the bankrupt exchange. He also apologized and explained that there is ” maybe still a chance to save FTX“.
“We probably could have raised significant funds; the potential interest in billions of dollars in funding came about eight minutes after I signed the chapter 11 documents“said the former leader. Thereby, Sam Bankman-Fried argues investors were ready to cash out billions dollars for FTX.
He believes that the exchange could have combined these funds with the remaining collateral and interest from other parties. This way, FTX would have had enough liquidity to “return great value to customers and save the business“. For Sam Bankman-Fried, what was not done at the time of the declaration of bankruptcy can still be done.
Do the leaders intend to slip away?
November 22, Reuters reported that FTX executives, including SBF, have purchased properties in the Bahamas. They reportedly spent $300 million to acquire vacation real estate in the area. So it seems that SBF and senior executives at FTX have already their relapse point in case the situation escalates.
Meanwhile, it was revealed that SBF’s two businesses, FTX and Alameda, suffered a loss of $3.7 billion. Furthermore, John Ray, the new CEO of FTX, recently revealed that the exchange was very poorly managed and organized.“I have never seen, in my career, such a complete failure of the control mechanisms of a company”did he declare.
According to Autism Capital, SBF’s statement just indicates that it refuses to take responsibility. Indeed, the crypto whistleblower said: “The takeaway is an absence of accountability with zero admission that the factors that led to this debacle were within his control.“.
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