Crypto Community unimpressed by SBF’s lengthy substack letter

Published at: Jan. 12, 2023

The crypto community has voiced their opinions on Sam Bankman-Fried’s latest “pre-mortem overview” of the collapse of FTX, published on Jan. 12 as a letter on substack. 

https://t.co/XVd0BPHxEU

— SBF (@SBF_FTX) January 12, 2023

As previously reported by Cointelegraph, the former FTX CEO Sam Bankman-Fried denied allegations made against him in his lengthy letter, dubbed as a "pre-mortem overview",. In the letter, SBF maintained that FTX US had been "fully solvent" at the time the firm filed for Chapter 11 bankruptcy, with approximately $350 million in cash available.

Bankman-Fried further stated that FTX International had a substantial amount of assets, approximately $8 billion, when John Ray became the CEO. According to Bankman-Fried, “No funds were stolen. Alameda lost money due to a market crash it was not adequately hedged for–as Three Arrows and others have this year.”

Unfortunately for SBF, the crypto community seemed unimpressed by his “pre-mortem overview” of the collapse of FTX.

The Wall Street Silver shared “There is no mention of the billions in “loans” he took out from customer money to fund his lavish lifestyle and political donations. I am shocked his legal team has not stopped this guy from talking.”

SBF released a Substack article with his version of events.There is no mention of the the billions in “loans” he took out from customer money to fund his lavish lifestyle and political donations.I am shocked his legal team has not stopped this guy from talking. pic.twitter.com/8hTFgRhXva

— Wall Street Silver (@WallStreetSilv) January 12, 2023

Fintech analyst Peruvian Bull shared “SBF is sitting in his parent's mansion writing substack articles blaming everyone but himself for the FTX fraud. He was a genius when talking to VCs, now suddenly we're supposed to believe he's the most incompetent CEO in history.”

SBF is sitting in his parent's mansion writing substack articles blaming everyone but himself for the FTX fraud. He was a genius when talking to VCs, now suddenly we're supposed to believe he's the most incompetent CEO in history.https://t.co/BHwf7opIA2

— Peruvian Bull (@peruvian_bull) January 12, 2023

Appellate attorney Michael Tex Duncan commented: “So it looks like SBF is no longer tweeting his crimes, but instead has a new substack to detail them.” 

So it looks like SBF is no longer tweeting his crimes, but instead has a new substack to detail them. Sure he can confess to things more than 280 characters at a time, but if they're like me, I'd wager the FBI agents on the case are still annoyed about having to sign up for it.

— Michael Tex Duncan - https://post.news/texduncan (@texduncan) January 12, 2023

Bitcoin researcher Andrew M. Bailey commented: “SBF has a new Substack post filled with reconstructed numbers and tables and estimates about Alameda's final months. I read them. They're a smokescreen. Obviously.”

SBF has a new Substack post filled with reconstructed numbers and tables and estimates about Alameda's final months. I read them.They're a smokescreen. Obviously.

— Andrew M. Bailey (@resistancemoney) January 12, 2023

Related: Sam Bankman-Fried: ‘I didn’t steal funds, and I certainly didn’t stash billions away’

On Jan 12, Cointelegraph reported that Joseph Bankman, the father of Sam Bankman-Fried, has reportedly hired an attorney as the criminal case against his son moves forward. Joseph Bankman reportedly advised and assisted his son on matters related to lobbying lawmakers in Washington D.C. and may now be cooperating with prosecutors behind SBF’s case.

However, It remains unclear whether Joseph Bankman has any criminal or civil liability related to the collapse of FTX. 

Tags
Ftx
Related Posts
SEC Chair Gary Gensler responds to concerns about first Bitcoin-linked ETF
United States Securities and Exchange Commission Chair Gary Gensler and ProShares head of investment strategy Simeon Hyman discussed the launch of the first Bitcoin-linked exchange-traded fund (ETF) with CNBC on Tuesday. ProShares Bitcoin Strategy ETF, also known as BITO, is based on CME Bitcoin (BTC) futures contracts. CNBC commentator Bob Pisani shared concerns from some investors that BTC futures could deviate from the BTC spot price. “The futures market is a better place for price discovery,” said Hyman. “The CME futures market trades more volume than the largest U.S. crypto exchange. We launched a similar mutual fund on 7/28, and …
Adoption / Oct. 19, 2021
Trouble in the Bahamas following FTX collapse: Report
Following the collapse of crypto exchange FTX, which was headquartered in the island nation of Bahamas, Bahamians are reportedly still trying to find a way to make sense of everything, while remaining optimistic about the future. According to a report by the WSJ, the island nation — which encouraged cryptocurrency companies to feel at home with their “copacetic regulatory touch” — has been rocked by the implosion of FTX. The Bahamas, which was also hard hit by hurricane Dorian in 2019 and the pandemic shortly afterward in 2020, was already struggling to find ways to strengthen its economy which relies …
Blockchain / Nov. 25, 2022
$75M worth of FTX’s political donations at risk of being recalled due to bankruptcy: report
Following the collapse of FTX and its bankruptcy filing on Nov. 11, $73 million worth of its political donations are currently at risk of being recalled to repay the failed exchange’s creditors, according to a report by Bloomberg. Speculators online allege that the former FTX CEO and his executives sought to influence industry regulations with their generous multi-million dollar donations to politicians and super-PACs. Sam Bankman-Fried, along with his executives Ryan Salame and Nishad Singh, are believed to have been among high paying donors to both the Republican and Democratic U.S. political parties. Many politicians who were at the receiving …
Blockchain / Dec. 12, 2022
FTX’s Liquid exchange hopes to return customer assets next year
The FTX-owned Japanese crypto exchange Liquid has announced plans to begin the process of returning customer assets in 2023. According to the Dec. 29 statement issued on its blog, the exchange is preparing to return assets entrusted by both customers from FTX Japan and Liquid Japan, and is working on a report for January 2023 that would further outline the details. A statement from the team read: “For the assets entrusted to us by our customers at FTX Japan and Liquid Japan, we are proceeding with system development so that withdrawals will be possible from the Liquid Japan web version.” …
Blockchain / Dec. 29, 2022
Sam Bankman-Fried denies moving funds from Alameda wallets
Sam Bankman-Fried, the former CEO of the now-defunct FTX exchange, has denied moving funds tied to Alameda wallets, days after he was released on a $250 million bond. On Dec. 30, Fried tweeted to his 1.1 million followers, denying any involvement in the movement of funds from Alameda wallets. In response to the allegations that he may have been responsible for moving funds out of Alameda wallets, he shared: “None of these are me. I'm not and couldn't be moving any of those funds; I don't have access to them anymore.” None of these are me. I'm not and couldn't …
Technology / Dec. 30, 2022