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SBF Writes Overview Article Criticizing Binance’s CZ


Sam Bankman Fried “SBF” has written an article on Substack in which he gave what he called a pre-mortem overview of his bankrupt company FTX.

The article’s primary emphasis was criticism of Binance CEO Changpeng Zhao “CZ”. Notably, SBF still did not provide an explanation for the misuse of client funds.

The FTX collapse, after all is said and done, falls in between that of Voyager and Celsius, according to SBF, who also said that three different things came together to produce the collapse.

One is that towards the end of 2021, Alameda’s financial sheet had around $100 billion of Net Asset Value, $8 billion of net borrowing (leverage), and $7 billion of cash on hand. This occurred throughout the course of the year 2021.

The second issue is that Alameda did not adequately hedge its market exposure, which is something that was brought to the attention of SBF.

SBF jail

As a result, the market value of its assets dropped by around 80 percent over the course of 2022 as a result of a series of massive, wide market collapses that occurred in equities as well as in crypto.

Thirdly, in November 2022, the CEO of Binance was responsible for a very severe, extremely rapid, and planned market collapse that rendered Alameda bankrupt.

And eventually, the disease that originated in Alameda made its way to FTX and other locations, such as Three Arrows, etc. finally had an effect on Voyager, Genesis, Celsius, BlockFi, and Gemini, amongst other places.

SBF Says Recovery is Possible for FTX

Despite this, the SBF believes that very considerable recovery still has the potential to be possible. According to SBF, selling FTX as a functional firm has always been the optimal recovery situation for consumers.

Recently, attorneys handling the FTX bankruptcy revealed that $5 billion was recovered. Consequently, only individuals directly engaged in the liquidation and essential suppliers may get payments from FTX.

Lastly, the company founder keeps reiterating that FTX US is in a healthy financial position and ought to be able to refund all of the monies that were contributed by clients.

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