Former FTX CEO Sam Bankman-Fried (SBF) has released a report detailing their accounts version of what really happened at FTX. SBF claims “no funds were stolen” and attributes the collapse to Alameda’s inability to adequately hedge against a market downturn.
Reasons for the drop in FTX according to SBF.
In its report, SBF gives three reasons for the “implosion” of FTX.one. In 2021, Alameda’s financial condition improved significantly, reaching a net asset value of around $100 billion, a net borrowing amount (leverage) of $8 billion, and liquidity availability of $7 billion.
2. Alameda was not prepared for the changes in the market. During the year 2022 there were a series of significant stock and cryptocurrency market crashes, resulting in an 80% decline in the value of their assets.
3. In November 2022, a sudden and extreme crash led by the CEO of Binance left Alameda insolvent.
Possible FTX recovery?
Furthermore, SBF suggests that FTX could still recover and makes a strong statement on the state of FTX.US, stating that it is “ridiculous” that FTX US users have not yet recovered and have not recovered their funds.” SBF’s version of the FTX collapse is interesting, as it suggests that the problem was not a theft of funds, but a lack of protection against a market crash. However, some critics have pointed out that this explanation does not directly address the argument that Alameda should never have had access to customer funds in the first place.
In any case, it is important to follow the development of this story closely and see how FT recovers.X. In the meantime, it is important that cryptocurrency investors and users are aware of the risks associated with these platforms. and take steps to protect your investments.
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