Former FTX CEO Sam Bankman-Fried has released an extensive Substack article talking about how his crypto empire collapsed, once again blaming rival crypto exchange Binance.
On Thursday, Bankman-Fried published a Substack article titled “FTX Pre-Mortem Overview,” talking extensively about a group of cryptocurrency companies and how they failed. Among other things, the infamous crypto boss continued to claim that Binance played a major role in the collapse of his business.
“Alameda went bankrupt in November 2022 due to the extreme and rapid targeted crash caused by the CEO of Binance,” SBF said, adding that the contagion from Alameda has since spread to FTX and other companies. .
SBF also said that Binance CEO Changpeng Zhao (CZ) had run a “very effective months-long PR campaign against FTX” that led to the exchange’s bankruptcy in the fateful days of November. claimed.
SBF’s allegations come despite the fact that new FTX management has accused him of mishandling customer funds. FTX attorney Andrew G. Dietrich said Wednesday in federal court in Wilmington, Delaware, that Alameda spent a lot of money on hotels and parties.
“this [Alameda] I bought planes and houses, threw parties, and made political donations. Made a personal loan to the founder. Sponsored his FTX Arena in Miami, Formula 1 teams, League of Legends, Coachella and many other companies, events and personalities. ”
FTX’s new CEO, John Ray III, has accused SBF and other FTX executives of incompetence, inexperience and haphazard bookkeeping. He said in mid-December that FTX collapsed because “control is concentrated in the hands of a very small group of very inexperienced and unsophisticated individuals.”
SBF also claimed that his cryptocurrency exchange and trading firm Alameda Research was highly profitable in 2021, but things have taken a turn for the worse last year after a string of events that began with the collapse of Terra and 3AC. It started to get worse and nearly all property values fell. All major tokens.
“FTX International and Alameda were legitimate and independently profitable businesses in 2021, each earning billions of dollars,” he said, adding that Alameda will be “approximately 80% of its asset value in 2022. ‘, he added.
As reported, Bankman-Fried was arrested in the Bahamas last December after U.S. prosecutors formally filed criminal charges against him. He was eventually extradited to the United States and released from prison after a New York court posted him $250 million in bail.
New FTX management recently revealed that it has recovered more than $5 billion in cash and liquid assets that could be used to repay creditors. Billions of dollars in assets,” he said, claiming that “FTX US is fully solvent and has always been.”
In particular, this post addresses the criminal charges filed against SBF or filed by former FTX and Alameda executives, particularly FTX co-founder Gary Wang and Alameda Research former CEO Caroline Ellison. It does not address the guilty plea.
