In a letter to employees, Sam Bankman-Fried, CEO of the defunct cryptocurrency exchange FTX, detailed the disaster that FTX experienced. Sam Bankman-Fried, despite the current turn of events, has issued an additional apology while offering what seems to be false optimism, stating, maybe there is still a chance to preserve FTX.
Before diving into this piece, you may want to catch up on some relevant stories, like how SBF allegedly secretly moved $300 million in personal stakes or how applications for the special council of the ApeCoin DAO are being accepted until November 20th.
A letter supposedly from SBF to firm employees, received by finance writer Liz Hoffman, details the catastrophic condition of collateral and obligations the exchange has. There was a precipitous drop in the value of FTX and Alameda's cryptocurrency assets, from an estimated $60 billion to less than $10 billion. There were already problems due to the fact that FTT, the exchange's native token, was listed as collateral.
However, SBF brought out certain evidence that strongly implies the result may have been altered for FTX. At the time of the bankruptcy filing, the erstwhile crypto billionaire claimed that investors were willing to put billions of dollars into FTX and that FTX still had value.
Additionally, he acknowledged the possibility that the firm may have acquired substantial capital; prospective interest in billions of dollars in investment came in about eight minutes after he signed the Chapter 11 (bankruptcy) paperwork.
He continued by saying that the firm may still be in operation today if only it had returned significant value to consumers. In spite of his repeated assurances that fresh investors are interested in putting up billions of dollars, he says he has no control over the situation.
The community still doesn't believe in him, despite all of his apologies. The story goes that Sam Bankman-Fried (SBF) withdrew $300 million in undisclosed personal stakes. The whole circumstance appears fishy, given that the market is watching the bitcoin market.
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