Liquidity issues in the cryptocurrency market have existed since the first half of 2022, making it difficult for companies to survive. One after another, numerous well-known businesses, including Terraform Labs, Hodlnaut, Celsius, Three Arrows Capital, Voyager, Zipmex, and Vauld acknowledged their problems.
One of the largest cryptocurrency exchanges in the world, FTX, seemed to be on track until recently. However, after the exchange began to experience liquidity issues, SBF’s empire crumbled.
The exchange then filed for bankruptcy, and SBF stepped down as the CEO of the firm. In a series of tweets, SBF explains what happened with FTX.
FTX’s Fried says that customers are his first priority
Fried mentioned in the tweet that he will get to what happened, but for now he wanted to talk about where FTX is today. He said that, to the best of his knowledge, Alameda had more assets than liabilities M2M. He also added that FTX US had enough to repay all customers.
SBF stressed his one goal, which is to do right by customers. “I’m contributing what I can to doing so. I’m meeting in-person with regulators and working with the teams to do what we can for customers.” He added that first comes customers and then investors.
However, it is unclear at the moment as to how customers will be able to withdraw their funds. Millions of investors have poured their life savings into FTX. SBF has also made sure to delete more than 100 tweets over the last few days. In some of these tweets, he stresses the robustness of FTX.
Some of the notable deleted tweets include one where SBF says that FTX has enough liquidity to cover all client holdings. He even stated that they do not invest client assets in treasuries. SBF had also tweeted about a competitor, accusing them of spreading false rumors about FTX and its assets. However, all of these tweets are gone now. The fall of FTX may have also pushed global regulators to frame a cryptocurrency regulatory framework, but the outcome is still pending.