Sam Bankman-Fried Apologizes For FTX's Liquidity Crisis: 'I Screwed Up Twice'

According to the CEO of FTX, Alameda Research was also in the process of "closing its operations", but the American exchange FTX US "n 'has not been financially affected' by recent events.

In one of his first public statements since rumors and concerns about FTX's insolvency flooded the crypto market, CEO Sam Bankman-Fried, or SBF, said, "I'm sorry ."

In a November 10 Twitter thread, SBF admitted to investors that it "should have done better" by providing transparency on the situation with FTX. The CEO reported that the exchange was experiencing a "liquidity crisis" caused by user withdrawals and requested financial assistance from Binance - a potential deal that later fell apart.

According to SBF, the exchange saw about $5 billion in withdrawals on Nov. 6. The total market value of FTX International's assets was greater than its clients' deposits, but "liquidity varies widely, from very to very little."

"The full story here is one I'm still fleshing out every detail of, but as a very high level I messed up twice," SBF said. "The first time around, poor internal labeling of bank accounts meant I was significantly off my sense of user margin. I thought it was much lower."

FTX CEO added:

"I should have said more. I'm sorry - I got slammed with things to do and didn't update you all."

1) I'm sorry. This is the most important thing.

I messed up and should have done better.

While the deal with Binance may be dead, SBF said FTX is discussing similar options with “a number of pla...