Sam Bankman-Fried Details FTX Crash, Apologises To Employees In New Letter

Ex FTX CEO Sam Bankman-Fried (SBF) has apologized to his former colleagues jn a new letter.

SBF also explained why the crypto exchange collasped in the letter.

SBF wrote that FTX collaspe started with the market’s crash in Spring.

FTX suffered a "dry up" of credit following the market crash. Customers withdrawing their funds en masse capped FTX’s debacle SBF said.

FTX’s poor margin management and risk controls added to these issues and ultimately led the company to file for bankruptcy protection, SBF said.

According to SBF, FTX had around $60 billion in collateral and $2 billion in liabilities this spring, but a market crash meant the collateral’s value was reduced to half.

The drying up of credit in the industry meant FTX’s collateral was worth around $25 billion, though liabilities jumped to $8 billion.

Another crash in November "led to another roughly 50% reduction in the value of collateral over a very short period of time," at $17 billion at the time.

SBF said he felt "deeply sorry about what happened" and was pressurized to file for bankruptcy protection — something he appears to regret.

Despite its woes, SBF still believes there is a chance to save FTX.

"I believe that there are billions of dollars of genuine interest from new investors that could go to making customers whole. But I can’t promise you that anything will happen, because it’s not my choice," he said in the letter.

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