Bankman-Fried: FTX assets exceed customer deposits

FTX assets exceed client liabilities, and the liquidity crunch has not affected the exchange’s U.S. arm, according to chief executive Sam Bankman-Fried.

2) I also should have been communicating more very recently.

Transparently—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.

— SBF (@SBF_FTX) November 10, 2022

“I regret it; that’s the most important thing. I messed up and should have acted better. I was constrained because of possible deal with Binance; I wasn’t really allowed to speak publicly. But, of course, it’s on me that we even got here,” he wrote.

According to Bankman-Fried, liquidity problems were confined to the global platform FTX International. He stressed that the U.S. division — FTX US — was financially unaffected.

The head of the company added that the exchange is not insolvent. However, due to a miscalculation of customer margins, it faced difficulties.

“At the moment, the total market value of assets/collateral at FTX International is higher than client deposits (moving with prices!). But this differs from the liquidity for withdrawals — as you can judge by the status of withdrawals. Liquidity varies across a wide range — from extremely high to very low,” he wrote.

Bankman-Fried said the company is “doing everything possible to raise liquidity”. He said there are several organisations with which FTX is in talks. He also stressed that “every penny” will be directed to users.

The head of the company said Alameda Research will no longer use FTX as a trading platform. He noted that the firm is not doing “anything strange, about which people talk on Twitter.”

Earlier, social media began circulating messages that Alameda allegedly took short positions on the stablecoin USDT.

Alameda’s make-it-back trade is shorting usdt, which presumably they have assymetric information on since if it’s screwed it’d be a direct result of ftx/alameda going tits up

If their short prints and tether tanks, it’d further cripple crypto as an industry

Effective altruism

— gainzy (@gainzy222) November 10, 2022

In conclusion, Bankman-Fried wrote a few words about an unnamed competitor.

20) At some point I might have more to say about a particular sparring partner, so to speak.

But you know, glass houses. So for now, all I’ll say is:

well played; you won.

— SBF (@SBF_FTX/status/1590709197502812160?ref_src=twsrc%5Etfw”>November 10, 2022

“At some point, I might have more to say about a particular sparring partner, so to speak. But you know, glass houses. So for now, all I’ll say is: well played; you won.”

On 10 November, Binance withdrew from the deal to acquire FTX. The company said it would be unable to resolve the platform’s problems.

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