FTX CEO Sam Bankman-Fried Issues Public Apology

Vignesh Karunanidhi
FTX CEO Sam Bankman-fried Issues Public Apology
Source: TIME

Since the first half of 2022, there have been liquidity problems in the cryptocurrency space, making it challenging for businesses to survive. Numerous well-known companies, including Celsius, Three Arrows Capital, Terraform Labs, Hodlnaut, Voyager, Zipmex, and Vauld admitted that they were in trouble, one after another.

Up until recently, FTX, one of the biggest cryptocurrency exchanges in the world, appeared to be on track. However, SBF’s empire collapsed after the exchange started facing liquidity crunches.

The billion-dollar empire tumble was something no one saw coming. However, millions of customers whose funds are locked in the exchange are in distress. While the exchange is trying to solve its crisis, the FTX CEO issued a public apology.

FTX’s SBF said that he should have done better

After all the market turmoil caused by the fall of the FTX exchange, Sam Bankman-Fried issued a public apology to the cryptocurrency community. Fried mentioned that he fu**ed up and that he should have done better.

“…my hands were tied during the duration of the possible Binance deal; I wasn’t particularly allowed to say much publicly. But of course it’s on me that we ended up there in the first place.”

Fried mentioned that the whole drama is only about FTX International. He asserted that FTX US users are fine. He mentioned that FTX International currently has a total market value of assets higher than the client deposits. However, he stated that it is different from liquidity for delivery.

Fried mentioned that on Sunday the exchange saw a large withdrawal of roughly $5 billion. He repeats that the present situation is all on him and that his number one priority is to do right for the users. SBF also asserted that he will take responsibility and do what he can.

“So, right now, we’re spending the week doing everything we can to raise liquidity. I can’t make any promises about that. But I’m going to try. And give anything I have to if that will make it work.”

Fried said that he is in talks with a number of large players from the industry. He said that every penny of the existing collateral will go to the users. The second priority goes for the investors and then the employees of FTX, as per Bankman-Fried’s tweet.

SBF also mentioned that he is unsure of what will happen going forward, but stated that Alameda Research is winding down trading. “They aren’t doing any of the weird things that I see on Twitter–and nothing large at all. And one way or another, soon they won’t be trading on FTX anymore.”

Transparency is something that FTX will focus on if it continues to operate in the future. Fried also mentioned that all stakeholders would have a hard look at FTX governance.

Bankman-Fried tried to assure everyone that, at present, the most important thing is to do right by the customers. He concluded his 22-tweet-long thread by apologizing once again to the community. It is unclear at the moment in what direction will FTX head to. However, he ensures us that he is doing everything in his power to do the right thing for the customers.