Former FTX CEO Sam Bankman-Fried (SBF) published a Substack newsletter on January 12, 2023, with the first post being titled “FTX Pre-Mortem Overview”. In the post, SBF argues that an “extreme, rapid and directed crash precipitated by the Binance CEO rendered Alameda insolvent.” The blog post does not mention the allegations made by his former co-workers, former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang. The disgraced former FTX executive also conducted a personal interview at his home. in Palo Alto with Puck News reporter Theodore Schleifer.
Former FTX CEO Fights Fraud Charges and Maintains Innocence in New Substack Post
FTX co-founder Sam Bankman-Fried (SBF) has been more vocal of late since his arrest and initial appearances before a judge for the Southern District of New York. On January 12, 2023, SBF started a Substack newsletter called “SBF’s Substack” and published its First comment about the downfall of FTX and Alameda Research, the quant trading firm he founded in 2019. In the first blog post, SBF insists it did not steal client funds.
—SBF (@SBF_FTX) January 12, 2023
“I didn’t steal funds, and I certainly didn’t stash billions,” the former FTX CEO wrote. SBF also emphasized that he did not “run Alameda for the last few years.” He claimed three factors contributed to the downfall of FTX and Alameda, including Alameda’s balance sheet expansion and Alameda’s inability to “sufficiently hedge its market exposure.” Furthermore, SBF believes that the final nail in FTX’s coffin was driven by Binance CEO Changpeng ‘CZ’ Zhao. In the Substack blog post, SBF said:
In November 2022, an extreme, rapid, and targeted crash precipitated by the CEO of Binance rendered Alameda insolvent.
Much of SBF’s Substack blog post is similar to previous interviews he gave before his arrest. There is little new information in the blog post compared to what the FTX co-founder said during his media tour in mid-November 2022. While SBF insists he “did not steal funds,” the former FTX executive did not. addresses the topic. allegations made by his former co-workers, former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang, who reported financial misconduct and the combination of FTX client funds with Alameda Research from of 2019.
SBF contacts a new CEO to lend a hand, but he remains isolated and alone
SBF also mentioned that after transferring FTX US to John J. Ray III, the exchange was still solvent. “It’s ridiculous that FTX US users still haven’t recovered and haven’t gotten their funds back,” SBF commented on his blog. The disgraced former FTX CEO also discussed his dealings with new FTX CEO Ray with the Puck News reporter. Theodore Schleifer. puck’s reporter with SBF at his parents’ home in Palo Alto, California, where SBF greeted him with his government-issued anklet. The SBF German Shepherd “Sandor” was also present at the house.
I wrote the other day that Sam Bankman-Fried deeply believes that the traditional crisis communications textbook is dead.
The decision to post this says it all better than me. https://t.co/gAVcmy08sK
—Teddy Schleifer (@teddyschleifer) January 12, 2023
Schleifer reported that SBF contacted FTX’s new CEO, John Ray, “six or seven times” to offer his help. The Puck reporter noted that Ray has “kept his distance” from the former FTX CEO. The interview highlights that SBF is alone and isolated and is “relieved to have internet access back,” Schleifer reported. The Puck reporter knew SBF before the exchange’s demise when they chatted in the fall of 2020. Schleifer wrote that “we were both interested in the effective altruism movement” and “were texting every few months about politics or philanthropy”. The interview lasted two and a half hours and SBF talked about the difficulties of being a vegan when he was in jail in the Bahamas and ate a lot of peanut butter.
While awaiting his October 3, 2023 trial in the Southern District of New York and facing eight counts of financial fraud and conspiracy charges, SBF continues to play “a lot of video games.” According to Schleifer, SBF’s game of choice these days is “Storybrook Brawl,” but the disgraced FTX co-founder doesn’t use his username or speak to other players. Despite playing video games, “it really doesn’t completely distract you from what’s going on,” SBF told Schleifer.
Although Schleifer notes “that there aren’t many real people for (SBF) to talk to anymore,” the interview does not address the allegations made by Ellison and Wang. Puck’s interview briefly mentions that both co-workers have “changed (SBF) ” and that FTX’s engineering director “(Nishad Singh) is expected to do the same.”
What do you think of SBF’s efforts to clear its name? Share your thoughts in the comments below.
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