Bitmex co-founder Arthur Hayes has criticized FTX co-founder Sam Bankman-Fried. “All this talk about what Alameda did is misdirected,” Hayes claimed. “It doesn’t matter how they hedged, didn’t hedge, or what dog** they had in their portfolio.”
Bitmex co-founder slams former FTX CEO for avoiding transparency
Arthur HayesCo-founder of crypto derivatives platform Bitmex has criticized former FTX CEO Sam Bankman-Fried following a recent blog post. In a blog post, Bankman-Fried said, “Alameda failed to adequately hedge its exposure to the market,” adding, “The extreme, rapid and targeted crash caused by his CEO of Binance saw Alameda I became insolvent,” he said. A prominent member of the cryptocurrency community, Hayes has significant knowledge of cryptocurrency derivatives exchanges as Bitmex has been one of the largest exchanges since his inception in 2014.
“Exchanges should never lose money if their customers are liquidated,” says Hayes murmured on friday. “There is no excuse [for] give [your] Hedge Fund Alameda Accounts with liquidation turned off. All this talk about what Alameda did is misdirected. It doesn’t matter how they hedged, didn’t hedge, or what dogs** they had in their portfolio,” added the Bitmex co-founder.
Hayes told Bankman-Fried that if he really wanted to explain what happened, he should tell the community why he thought it was a good idea to give hedge funds accounts with the clearing feature turned off. . A statement from former Alameda CEO Caroline Ellison said, “I am fully aware that management has implemented special settings on Alameda’s FTX.com account to allow Alameda to maintain negative fiat and crypto balances. I understand.”
Alameda Negative Balance Account: A Mystery Shrouded in Mystery
Additionally, Bitcoin.com News reviewed documents allegedly in Ellison’s possession. This indicates that the former Alameda CEO had his FTX trading account leveraged, where he was at a negative $1.3 billion deficit in May 2022. Hayes said Bankman-Fried’s now-defunct exchange could still function if Alameda were removed from the equation and a fair liquidation took place. “If you liquidate Alameda like any other FTX punter, FTX will still work, it’s that simple,” says Hayes. murmuredCEO of BitMEX Added:
Without talking about Alameda, tell us how you approached risk management at the FTX level. Why were some clients treated differently than others? I would like to understand why you thought it was wise to disable the liquidation of the $1 billion notional position.
Many people responded to the Twitter thread Hayes wrote, and one I have written: “User paid for Alameda’s negative account equity. Shameful,” others echoed Hayes’ sentiment, say it “It’s really simple.” “This is the most basic question SBF keeps avoiding. At least he said sorry,” said another. Added.
What do you think of Bitmex co-founder Arthur Hayes’ criticism of former FTX CEO Sam Bankman-Fried? Share your thoughts in the comments section below.
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