Former FTX CEO Sam Bankman-Fried, also known as SBF, has reiterated apologies to the exchange’s employees in a letter explaining the collapse.
In a Nov. 22 letter reviewed by Cointelegraph, Bankman-Fried breaks down the reasons behind FTX’s liquidity crisis and subsequent bankruptcy to employees. He largely confirms information reported by media outlets amid the exchange’s collapse, citing the crypto market downturn as one of the factors leading to a reduction in the value of FTX’s collateral assets. November’s “run on the bank,” according to the former CEO, helped reduce the exchange’s collateral to roughly $9 billion with $8 billion in liabilities.
“I never intended this to happen,” says SBF. “I did not realize the full extent of the margin position, nor did I realize the magnitude of the risk posed by a hyper-correlated crash.”
Bankman-Fried describes his role in the calamity as a failure in oversight, saying he should have been “more