Usually, when facing a long and painful prison, a criminal should not make his embarrassment public. But SBF, the founder of FTX, is obviously an exception. He did not keep a low profile as much as possible, but instead kept reminding the public of his fraud.
SBF apologized wildly, saying that "being responsible for customers"
Since November 10, SBF has been "showing presence" on Twitter . He first said: "I'm sorry - this is the most important thing. I messed up, I should do better."
He then said:
I should also communicate more recently.
is obvious that during the transaction with Binance, I was tied up and I was not allowed to say too much in public. But of course, it is my responsibility to finally get to this point.
He went on to say:
I'm still filling every detail of the whole story, but I messed up.
is the first time a bad internal tag for a bank-related account, which means my perception of user margin is severely biased. I thought it was very low.
The second time is about the leverage multiple. I thought leverage multiple was 0, which is actually 1.7.
The third time is insufficient communication. I should say more, I'm sorry - I'm overwhelmed by something and didn't provide everyone with the latest information.
He said that as the CEO of (FTX), he will be responsible to customers:
In short, my first priority now is to be responsible to customers. I will do this as much as I can. Take responsibility and do my best.
Ultimately, I'm the CEO, which means it's my responsibility to make sure everything goes well. I obviously failed in this regard. I'm sorry.
On November 16, he tweeted: "My only goal is to satisfy customers. I am doing this as much as I can. . I will meet with regulators in person and work with various teams to serve customers as much as we can. After that, there are investors. But first of all, customers."
In the early morning of November 17, SBF said that a month ago, FTX was a valuable company with daily trading volume of about $10 billion to $15 billion, annual revenue of about $1 billion, equity value of about $40 billion, "We are considered a model for running an efficient company."
teased that he has appeared on the cover of all magazines, and FTX is now the darling of Silicon Valley . He added:
"We are too confident and careless."
He said that FTX's leverage is not $5 billion, but $13 billion - he made a $8 billion mistake.
Regarding industry supervision issues, SBF also said that it is really difficult to be a regulator. They have an impossible job to do – regulating the entire industry, which is growing faster than their mandate. Therefore, they often fail to supervise as they would ideally.
He also said:
This means that interactions with regulators can be really frustrating—the workload is huge, many of which are casual and relatively less protection for customers.
should have a framework like this that allows regulators to allow freedom while protecting their customers.
Finally, SBF concluded:
In the future, I will no longer care so much about those stupid, non-substantial "good actors" frameworks.
What matters is what you do - actually doing good or bad things, not just talking about doing good or using ESG language.
In short, these are not important now. It is important to do my best to serve FTX's customers.
FTX Founder: Success and failure are risky
T-shirts, shorts and shabby sneakers and "explosive heads", FTX founder SBF tried to convince his followers that he made money at the fastest speed to save the world and give more people happiness.
In a media interview in September, SBF was asked: "What do you think the company you manage does better than any other company?" SBF replied: " risk management."It's ironic to see this answer now.
Many people's favorability for SBF is to a certain extent due to his " effective altruism" proposition . He always emphasized in interviews that "making money and doing good" is a life cause and plans to donate most of his wealth to charities with effective altruism.
SBF, born in Stanford Law Professor's House, once said in an interview that he had been instilled with his parents with the ultimate altruism idea since he was a child, and he wanted to bring happiness to more people, which made him a follower of Peter Singer, the father of effective altruism.
SBF met William, a philosopher who was also a follower of Singer when he was studying physics and mathematics at MIT . MacAskill, his claim to Give ( makes money for giving) has also become the creed of SBF's subsequent life. SBF has since asked itself to make money as fast as possible and bring happiness to more people . In 2020, at the age of 28, he was selected as the 2021 Forbes 0 rich people under the age of 30, and was on the cover of Forbes magazine .
In media interviews, SBF said that in 2021, he would be a charity group. Donated 50 million US dollars, and planned to donate 500 million US dollars in 2022, and a total of 1 billion US dollars in the next ten years.
SBF's generosity is far more than keen on charity. He also saved his colleagues who are on the verge of bankruptcy in times of crisis again and again. In May this year, he spent 240 million to save BlockFi and claimed to participate in the bidding for Voyager and spent hundreds of millions of dollars in time to provide help. He is called the "Citizen of the Cryptocurrency".
" makes money as fast as possible and donates money to those in need. ", "Thrift and thrift are concerned about careers", "very generous", these tags have become the image of SBF in front of the public before bankruptcy.
According to statistics, before bankruptcy, SBF's total assets were about US$15.6 billion. In January this year, three funds, including SoftBank Vision Fund, invested $400 million at a valuation of FTX of US$32 billion.
As the price of cryptocurrency plummeted this year, SBF has always claimed that he and his companies have not received any impact. But according to media reports, the collapse of the entire industry has dealt a serious blow to SBF's huge business empire. Alameda has borrowed money many times this year to save companies behind bars, just making a show.
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Wall Street News mentioned earlier that before bankruptcy, SBF owned more than 130 companies, collectively known as "FTX Group", and its complexity is far greater than Lehman Brothers .
leverage is the root cause of SBF's overnight bankruptcy. November 13, according to media cited investment materials, the FTX exchange only held $900 million in sales assets on the eve of bankruptcy, while its liabilities were $8.9 billion, of which 5.1 billion were settled in US dollars, which means FTX faced a funding gap of $8 billion.
filled the financial loophole of $8 billion? Difficult!
11, a US news website Vox writer Kelsey Piper said in the article that SBF insisted in a conversation with him that FTX did not invest deposits from crypto account holders on exchanges, but said Alameda borrowed funds from FTX's balance sheet for investments far more than he imagined, ultimately putting FTX in the equivalent of a bank run.
SBF said the top priority now is to try to raise $8 billion to get account holders back to normal, saying that this is “basically the most important thing for the rest of my life.” "However, Kelsey said SBF basically showed no trouble in the conversation.
Last week, SBF admitted to investors that its company had serious financial loopholes and pointed out the $8 billion funding gap. According to media citing people familiar with the matter, although FTX filed for bankruptcy last week, SBF still tried to raise for . SBF and several remaining employees of the company were just past weekend Visit everywhere and seek new investors' intervention.
Although he tried to raise funds by bond , stocks or a combination of both, the huge financial loopholes obviously cannot find a way to uncover the problem immediately.
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This article does not constitute personal investment advice, nor does it take into account the special investment goals, financial situation or needs of individual users.Users should consider whether any opinions, opinions or conclusions in this article meet their specific circumstances. The market is risky, so you need to be cautious when investing. Please make independent judgments and decisions.
Apology is easy, it is difficult to clean up this mess - it is difficult to
