Sam Bankman Fried's final words

SBF's letter was not supported by evidence, making it a reassuring story, though hardly credible to skeptics.

Exchanges & Wallets November 24
News Mundocrypto

Sam Bankman-Fried's exchange, FTX, crashed overnight, causing clients to lose their funds and workers their jobs. The burden has been so great that the CEO has not hesitated to send a last letter to the community and his employees in which he explains what really happened with FTX and apologizes accordingly.

The last letter from Sam Bankman Fried reveals how the CEO was unable to avoid the decline, indeed, he even realized that the ship was sinking until there was no turning back. The former CEO claims along his lines that he didn't want any of this to happen and that he "would give anything to go back and do things again." The former CEO claims to have cracked under the pressure of the moment, which made him unable to communicate with his employees in the first instance and clinging to asking for help from his main competitor, Binance.

"I was CEO, and so it was my duty to make sure that, ultimately, the right things happened at FTX. I wish that I had been more careful", SBF.

In the words of SBF, the events that led to the collapse of the exchange can be summarized as: a market crash that reduced 50% of the value of the reserves and a bank run, which definitively sank the exchange. "I didn't realize the full extent of the margin position, nor did I realize the magnitude of the risk that a hypercorrelated shock represents," he says.

"None of this changes the fact that this all sucks for you guys, and it's not your fault, and I'm really sorry about that. I'm going to do what I can to make it up to you guys–and to the customers–even if that takes the rest of my life. But I'm worried that even then I won't be able to", SBF.

SBF regrets not being more skeptical of highly leveraged positions or examining new possible scenarios. Another mistake Bankman-Fried regrets is failing to properly monitor assets and other fundamental risk metrics, as well as failing to account for proper margin management.


Swyftx slashes workforce

The exchange commences an internal reorganization process after stating that it has “no exposure to FTX”, but it is not immune to the ensuing market crash.

Exchanges & Wallets