Sam Bankman-Fried apologizes for the collapse of FTX

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Key Takeaways:

  •  On Thursday, demoralised FTX Sam Bankman-Fried apologised on Twitter in a crude manner as  his cryptocurrency exchange wobbled on the verge of failure
  • Bankman-Fried stated that once clients’ requirements are fulfilled, investors and staff will be taken care of. 

Sam Bankman-Fried has apologised for the economic meltdown of FTX, which this week shook the crypto community.

“I apologise. The biggest issue is that. In a lengthy thread on Twitter, Bankman-Fried admitted, “I f**ked up, and should have done better.

The founder of FTX continued by saying that Alameda Research, the exchange’s affiliated hedge fund, would cease trading while FTX concentrated on increasing liquidity, with “every penny” going toward aiding in customers’ and investors’ financial recovery.

One worry was that FTX was insolvent, which would prevent users from actually withdrawing their coins from the exchange. On Monday, the CEO of Bankman-Fried refuted these rumours in a since-deleted Tweet.

The crypto believer started by explaining why he hadn’t spoken publicly about FTX’s business with Binance, saying that he had “tied hands’ ‘ while talks were in progress. Bankman-Fried claimed that FTX’s US users were “fine” and that any issues only affected its global platforms.

SBF admitted in the Twitter thread that it had made two serious errors in judgement that had misled FTX into thinking it was better prepared for a bank run than it actually was.

In addition, Bankman-Fried expressed regret for not being open about the difficulties FTX was encountering. He feels he ought to have spoken more. He regrets not updating the community because he was overloaded with a lot of work on his plate.

However, in an unexpected turn of events, a rival company, Binance, on Tuesday moved to save FTX by purchasing it. Then, in what seems like a plot twist, on Wednesday, it was revealed that Binance might not actually protect FTX.

After conducting its proper checks, the company announced that day that it would not be purchasing FTX due to concerns that FTX was under investigation by the authorities.

Binance put out a statement in which it listed reports regarding mismanaged customer money and asserted US agency investigations as additional reasons for leaving FTX.  “Our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” Binance said.

SBF added that in any scenario where FTX remains active, radical transparency—transparency it probably should have been providing all along—will be its top priority. Giving as much on-chain transparency as possible so that people are aware of every detail.

The largest cryptocurrency exchange, FTX, came dangerously close to collapsing, which shocked the entire sector, which was already being ravaged by rising interest rates and worries about a recession.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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