Former FTX CEO Sam Bankman-Fried, also known as SBF, has reiterated apologies to the exchange’s employees in a letter explaining the collapse.
According to a Nov. 22 letter reviewed by Cointelegraph, Bankman-Fried broke down the reasons behind FTX’s liquidity crisis and subsequent bankruptcy to employees.
He largely confirmed information reported by media outlets amid the exchange’s collapse, citing the crypto market downturn as one of the factors leading to reduction in the value of FTX’s collateral assets.
November’s “run on the bank,” according to the former CEO, helped reduce the exchange’s collateral to roughly $9 billion with $8 billion in liabilities. “I never intended this to happen,” said SBF. “I did not realize the full extent of the margin position, nor did I realize the magnitude of the risk posed by a hyper-correlated crash.”Bankman-Fried described his role in the calamity as a failure in oversight, saying he should have been “more skeptical of large margin positions,” and had more procedures in place to monitor and simulate crashes and runs on the bank.Read more on cointelegraph.com