FTX founder Sam Bankman-Fried (SBF) reappeared on Substack on Thursday and repeated that he didn’t “steal funds” in what appeared to be an overview of his authorized case. SBF, at present unemployed and below home arrest, has carried out what appeared like the subsequent pure step: he created a Substack e-newsletter and charged folks $80 a yr to subscribe.
Within the first submit of the aptly-called “SBF’s Substack,” the disgraced former FTX CEO blamed the failure of the cryptocurrency trade’s subsidiary firm Alameda Analysis on Changpeng Zhao ‘CZ,’ the CEO of Binance.
An excessive, fast, focused crash precipitated by the CEO of Binance made Alameda bancrupt,” SBF added that FTX was affected by the Alameda virus. “and different locations.
The 2 chiefs of the crypto trade have brazenly sparred over CZ’s half within the FTX challenge, which at one time concerned a rescue proposal that was in the end scrapped.
In response to SBF’s report on Substack, CZ had performed an “extraordinarily profitable months-long PR marketing campaign towards FTX” earlier than the essential week or so in November that resulted within the trade’s chapter.
“I didn’t steal funds, and I definitely didn’t stash billions away,” SBF wrote.
In December, federal authorities detained SBF, however he was launched on a record-breaking $250 million bond. Nonetheless, he has been below the custody of his mother and father at their Palo Alto dwelling in California.
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The FTX founder is prohibited by the phrases of his bail from establishing any new traces of credit score, forming a enterprise, or participating in any monetary transactions larger than $1,000 with out acquiring the mandatory authorities or court docket permission. Subsequently, it seems that he won’t be able to monetize his Substack anytime quickly.
No Funds Had been Stolen, SBF Mentioned in Substack
In his first submit, SBF additionally lined different particulars about FTX’s chapter. He claimed there had been no criminality, contrasting the liquidity challenge that introduced down FTX’s sibling firm Alameda Analysis with different outstanding crypto crashes final yr.
“Alameda misplaced cash resulting from a market crash it was not adequately hedged for–as Three Arrows and others have this yr. And FTX was impacted, as Voyager and others have been earlier.”
Though SBF acknowledged within the submit that he had not been in control of Alameda for some time, Caroline Ellison, the corporate’s former CEO, was not explicitly talked about. In an obvious settlement to help legislation enforcement of their probe into FTX—and SBF—Ellison entered a responsible plea to fraud prices in December with the co-founder of FTX, Gary Wang.
Regardless of the allegations of fraud he’s combating, it seems like SBF plans to maintain running a blog
I’ve much more to say–about why Alameda didn’t hedge, what occurred with FTX US, what led to the Chapter 11 course of, S&C, and extra. However at the least this can be a begin.
Amid the continued scandal from current months, the value of the FTT token seems shaky. The token’s worth has dropped by roughly 95% for the reason that trade filed for chapter, from a excessive of $28 to its present worth of $1.38 on the time of writing, with no probability of ever rebounding.
Cowl picture from the New York Publish. FTTUSDT chart from Tradingview.
