'I didn't steal funds, and I certainly didn't hide billions': Sam Bankman-Fried speaks for first time since arrest
Disgraced FTX founder Sam Bankman-Fried has a lot to say.
Stephanie Keith/Bloomberg via Getty ImagesSBF, who is on bail after being arrested for fraud last month, has spoken out for the first time since his arrest in a lengthy blog post on the sub-stack. The public statement comes after his FTX and Alameda Research crypto empire collapsed, costing clients and investors billions in lost assets.
In what he calls an “FTX Pre-Mortem Preview,” Bankman-Fried seemingly laid out his case, pointing blame at Alameda’s leadership and the volatile nature of the crypto industry a few just weeks after pleading not guilty to eight criminal fraud charges.
The post claims that its crypto hedge fund, Alameda, "failed to sufficiently hedge against the risk of an extreme stock market crash: the hundred billion in assets had only a few billion dollars of blankets". SBF also reiterated that he is not in charge of Alameda after handing over the role of CEO to his former girlfriend Caroline Ellison in 2021.
He went on to cite the "crypto winter," according to CNN, which left crypto firms Three Arrows Capital, Voyager, and Celsius out of business following a drop in the value of digital assets. According to SBF, the companies' demise was the result of the industry downturn coupled with the Alameda "contagion" that spread to FTX. He wrote that he believed a "very substantial recovery" was possible and that he had been forced to file for bankruptcy.
His recent sentiments appear to echo previous remarks he made in November as he defended his innocence to several media outlets, including The New York Times, after filing for bankruptcy before his death. arrest.
Despite SBF's claims, prosecutors say Alameda used FTX client funds to offset hedge fund losses in what they call "one of the biggest financial frauds in American history ".
But SBF still vehemently denies any wrongdoing, writing "I didn't steal funds, and I certainly didn't hide billions."
Disgraced FTX founder Sam Bankman-Fried has a lot to say.
Stephanie Keith/Bloomberg via Getty ImagesSBF, who is on bail after being arrested for fraud last month, has spoken out for the first time since his arrest in a lengthy blog post on the sub-stack. The public statement comes after his FTX and Alameda Research crypto empire collapsed, costing clients and investors billions in lost assets.
In what he calls an “FTX Pre-Mortem Preview,” Bankman-Fried seemingly laid out his case, pointing blame at Alameda’s leadership and the volatile nature of the crypto industry a few just weeks after pleading not guilty to eight criminal fraud charges.
The post claims that its crypto hedge fund, Alameda, "failed to sufficiently hedge against the risk of an extreme stock market crash: the hundred billion in assets had only a few billion dollars of blankets". SBF also reiterated that he is not in charge of Alameda after handing over the role of CEO to his former girlfriend Caroline Ellison in 2021.
He went on to cite the "crypto winter," according to CNN, which left crypto firms Three Arrows Capital, Voyager, and Celsius out of business following a drop in the value of digital assets. According to SBF, the companies' demise was the result of the industry downturn coupled with the Alameda "contagion" that spread to FTX. He wrote that he believed a "very substantial recovery" was possible and that he had been forced to file for bankruptcy.
His recent sentiments appear to echo previous remarks he made in November as he defended his innocence to several media outlets, including The New York Times, after filing for bankruptcy before his death. arrest.
Despite SBF's claims, prosecutors say Alameda used FTX client funds to offset hedge fund losses in what they call "one of the biggest financial frauds in American history ".
But SBF still vehemently denies any wrongdoing, writing "I didn't steal funds, and I certainly didn't hide billions."
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