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Following an update from FTX debtors on the $5.5 billion discovered by administrators during an investigation, former FTX CEO Sam Bankman-Fried (SBF) took to Twitter to share a blog post from his Substack newsletter. SBF said the presentation published by law firm Sullivan & Cromwell is “extremely misleading” and that FTX US is solvent and “always has been”.

SBF claims misrepresentation by law firm, Twitter critics doubt solvency

Sam Bankman-Fried (SBF) provides additional information in response to the recent press release and 20-page presentation document issued by FTX debtors and current restructuring administrators. The press release reported that investigators found $5.5 billion in liquid assets. In response, SBF published a new blog on its Substack newsletter and declared on Twitter, “FTX US is solvent, as it always has been.” The blog post echoes this statement and claims discrepancies between the Sullivan & Cromwell (S&C) reports and the SBF spreadsheet.

Sam Bankman-Fried challenges FTX US 'deficit' claims, critics skeptical of Excel spreadsheet defense

He disputes the submission’s assertion that FTX US has a “deficit” and argues that FTX US is not insolvent. “S&C says FTX US has a deficit,” SBF said in its latest blog post. “This statement is false. Based on S&C’s own data provided in the same court submission, FTX US had approximately $609 million in assets ($428 million in bank accounts, plus $181 million in tokens) backing approximately $199 million. dollars in customer balances. FTX US was solvent when it was sold to S&C, and almost certainly remains solvent today.

Despite SBF’s claims, several people on social media mocked the FTX co-founder and specifically criticized his Excel spreadsheet. “Bro typed in some numbers in 5 minutes thinking this is going to be his free get out of jail card,” one person tweeted in response to SBF’s latest blog post. “Nice Excel sheet that a 5 year old could do — LOL — That doesn’t mean anything. Someone shut this dude down forever,” another person wrote. SBF’s claims were met with skepticism and his statements did not seem convincing to many.

Sam Bankman-Fried challenges FTX US 'deficit' claims, critics skeptical of Excel spreadsheet defense

Missing Funds, Lack of Reverse Charge Issues and “FTX’s Questionable US Reimbursement System” Unaddressed by Former FTX CEO

A number of people interrogates why SBF didn’t comment on the $10 billion in missing funds and again their blog post didn’t address the accusations made in the presentation. For example, following SBF’s latest blog post, Bitmex co-founder Arthur Hayes critical the co-founder of FTX for not addressing the absence of reverse charge associated with Alameda Research. FTX’s latest obligor submission claims that “Alameda Research and a small group of individuals had the ability to remove assets from the exchange.” Additionally, the withdrawal of funds was never recorded in the company’s ledger and the funds were allegedly from customers of the FTX exchange.

SBF did not address this specific topic at all. He is absent from his argument against the Sullivan & Cromwell presentation. People on Twitter have spoken to SBF about this on other Twitter threads on the subject, as SBF’s tweets are in “private” mode and cannot be commented on. “This does not explain the embezzlement allegations to which your colleagues have pleaded guilty,” one person tweeted. tweeted in response to SBF’s latest complaints. One person told the media that SBF’s claims appear to be intentional “misdirection” and “potentially for legal/defense purposes”.

It’s safe to say that Bankman-Fried’s claims and recent blog posts aren’t taken seriously, and his Excel spreadsheet method doesn’t convince the general public. Some people wondered if SBF was “likely tweeting against the advice of legal counsel.” The last blog post wasn’t much different from the last post written by SBF, as they both don’t explain a number of issues raised by Bankman-Fried colleagues – former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang. Additionally, evidence has emerged on how “traders may have used a dodgy US FTX refund system” for assets bridged by Solana.

Sam Bankman-Fried challenges FTX US 'deficit' claims, critics skeptical of Excel spreadsheet defense

Conor Rogan, a Coinbase executive who frequently tweets about on-chain activity, said this buyback program could complicate the bankruptcy process. “From Nov. 9 until withdrawals halted a few days later, traders may have used a dodgy FTX US redemption system to channel [tens of millions] off the exchange”, Rogan said. “This could complicate the bankruptcy process and put into question the FTX-FTXUS separation claims,” ​​he added. Rogan discussed a synthetic bitcoin based on Solana (BTC) token called “sollet (soBTC)” who broke his ankle when FTX issues were engulfed in flames. Despite the financial issues, FTX US has always handled sollet redemptions on a 1:1 basis.

The takeovers nevertheless took place when Sollet was trade for much less than BTCspot price, and Rogan believes that “toxic redemptions” or “unsecured swapping ETH and BTCresulted in a potential loss of over $40 million. “FTX US would likely have 1,700 reals BTCinstead of 1,700 soBTC worth close to zero on the open market today,” Rogan tweeted. The Chain Seeker Noted, however, that the evidence was his own “speculative findings based on research of the Solana address of FTX US and discussions with members of the Solana community”. Notably, following Rogan’s Twitter feed, SBF decided to respond to the claims made.

“I’m pretty confident that FTX US’s free cash surplus is much larger than the size of the wrapped asset issue to the extent there is one,” SBF wrote in reply to Rogan’s statements on Twitter.

Once again, SBF’s comment on the sollet (soBTC) issue was welcomed skepticism and critical shortly after posting the tweet. “You just said they were solvent. Now you’re ‘pretty confident?’ ” one person request the co-founder of FTX. “I’m pretty confident you’ll be spending a lot of time in federal prison,” another individual said. tweeted. Rogan’s Twitter feed and SBF’s response further point out that people don’t seem to buy into the former FTX CEO’s statements. “Nobody believes what you say and they never will”, a person responded to SBF’s sollet comment on Twitter.

Keywords in this story

$5.5 billion, charges, Alameda Search, Arthur Hayes, self-liquidation, Bankruptcy, Conor Rogan, Critical, debtors, Excel spreadsheet, former CEO, ftx, American subsidiary of FTX, FTX.US, Investigation, misleading, missing funds, Sequence, presentation, buyback plan, Sam Bankman Fried, sbf, SBF complaints, social media, Assets bridged by Solana, solvent, Sub-stack newsletter, Sullivan Cromwell, WE

What do you think of Sam Bankman-Fried’s claims about FTX US’s solvency and accusations of embezzlement and missing funds? Leave your comments below.

Jamie Redman

Jamie Redman is the news manager for News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for News about disruptive protocols emerging today.

Image credits: Shutterstock, Pixabay, Wiki Commons

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