- Sam Bankman-Fried printed an intensive Substack article Thursday titled, “FTX Pre-Mortem Overview.”
- He stated each FTX and Alameda Analysis have been netting billions in earnings in 2021, earlier than crypto token valuations crashed in 2022.
- He famous that “Alameda misplaced about 80 % of its belongings’ worth over the course of 2022, attributable to a sequence of market crashes.”
Sam Bankman-Fried, the disgraced founding father of FTX, printed a prolonged Substack article Thursday and claimed that his crypto trade in addition to buying and selling agency Alameda Analysis have been extremely worthwhile enterprises in 2021 earlier than the crypto winter started the next yr.
“FTX Worldwide and Alameda have been each legitimately and independently worthwhile companies in 2021, every making billions,” he wrote within the put up titled “FTX Pre-Mortem Overview.”
Nonetheless, the broader crypto setting took a flip when Three Arrows Capital and different companies collapsed within the spring of 2022, he defined. That helped sink the asset values of almost each main token, together with bitcoin, ether, solana, and others.
Alameda misplaced “about 80 %” of its belongings’ worth final yr, Bankman-Fried stated, which subsequently dragged down FTX in the identical manner that Three Arrows’ decline contaminated the likes of Voyager and others.
Nonetheless, he cautioned that he’s estimating some figures attributable to lack off entry to some data.
“Lots of my private passwords are nonetheless being held by the Chapter 11 group–to say nothing about knowledge,” he wrote. “If the Chapter 11 group desires so as to add their knowledge to the dialog, I’d welcome that.”
Bankman-Fried stepped down as the pinnacle of his crypto empire in November, and FTX filed for Chapter 11 chapter, which he has since stated was a regrettable choice.
New CEO John Ray III has accused Bankman-Fried and his deputies of incompetence, inexperience, and haphazard bookkeeping.
Nonetheless, in his Substack be aware, Bankman-Fried identified that there stays a possible for a really substantial restoration for purchasers, with FTX US nonetheless absolutely solvent.
In the meantime, FTX Worldwide nonetheless has “billions of {dollars} of belongings,” he defined, and he is additionally dedicating almost all of his personal private money to clients.
In a chapter listening to on Wednesday, FTX said it has located more than $5 billion in assets as a part of its work towards repaying collectors.
The ex-FTX chief pleaded not guilty on January 3 within the Justice Division’s legal case. He is because of stand trial in October.