Sam Bankman-Fried denies stealing FTX user crypto in new Substack post

Sam Bankman-Fried denies stealing FTX user crypto in new Substack post

In a Thursday morning Substack post, FTX co-founder Sam Bankman-Fried denied allegations that he stole billions in user funds and instructed that Binance CEO Changpeng “CZ” Zhao carried out a monthslong effort to carry down FTX.

It’s Bankman-Fried’s first important response to federal allegations that he directed an $8 billion fraud that destroyed his $32 billion crypto conglomerate. Earlier this month, Bankman-Fried pleaded not responsible to eight federal costs together with fraud and cash laundering, and was launched on a $250 million recognizance bond. His trial will start in October. Bankman-Fried is the topic of complaints from the Securities and Trade Fee and the Commodity Futures Buying and selling Fee as properly.

His post gives his perspective on the collapse of FTX and his hedge fund Alameda Analysis, and consists of purported FTX and Alameda monetary metrics, caveated as “JUST AN ESTIMATE.”

To start with of 2022, for instance, Bankman-Fried says he estimated Alameda’s whole internet belongings at $99 billion. By October, he believed that his hedge fund’s internet belongings had fallen to $10 billion. He pinned the collapse on a broader market downturn, even evaluating his FTT token’s efficiency to that of Tesla, bitcoin and the Invesco QQQ, an ETF that tracks the Nasdaq 100.

Chapter attorneys, federal prosecutors and regulators have contradicted most of the claims Bankman-Fried made in his post.

Regulators and prosecutors allege that neither FTX nor Alameda had been wholly professional companies however had been devices of Bankman-Fried’s fraud.

FTX’s restructuring officers have mentioned the companies confronted important and inexplicable money shortfalls after FTX filed for chapter in November.

The case in opposition to Bankman-Fried was constructed with the help of his longtime executives Caroline Ellison and Zixiao “Gary” Wang, each of whom pleaded responsible to costs of fraud. Bankman-Fried’s post didn’t acknowledge their cooperation with federal probes.

In his post, Bankman-Fried additionally famous that different crypto corporations have been “blown out.” He didn’t acknowledge that three of these corporations — BlockFi, Genesis and Gemini —allegedly suffered due to FTX’s collapse.

A lot of his claims had been ones he is made earlier than, together with that FTX US remained solvent, that Alameda’s liquidity disaster was not attributable to misconduct however due to broader market turbulence, and that FTX Worldwide and Alameda had been wholly professional, worthwhile companies.

The previous FTX CEO additionally pointed to a Nov. 6 tweet from Binance’s Zhao because the end result of an “extremely effective months-long PR campaign against FTX.”

Zhao has denied these claims. “FTX killed themselves […] because they stole billions of dollars,” the Binance CEO tweeted in December.

On the finish of the post, Bankman-Fried doubled down. “All of which is to say: no funds were stolen,” the 30-year-old wrote.  

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