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FTX’s ex-CEO Sam Bankman Fried claims Alameda had more assets than liabilities just a few days before bankruptcy filing

16 Nov, 20222 min readOther
FTX’s ex-CEO Sam Bankman Fried claims Alameda had more assets than liabilities just a few days before bankruptcy filing

Ex-FTX CEO Sam Bankman Fried said in a recent tweet that Alameda had more assets than liabilities as of Nov. 7, just a few days before it filed for bankruptcy, but noted that the assets were not liquid.

Bankman-Fried maintains that FTX US had enough money to repay all customers as of Nov. 7. He also noted that Alameda held a margin position in FTX International.

12) To the best of my knowledge, as of post-11/7, with the potential for errors:a) Alameda had more assets than liabilities M2M (but not liquid!)b) Alameda had margin position on FTX Intlc) FTX US had enough to repay all customersNot everyone necessarily agrees with this— SBF (@SBF_FTX) November 15, 2022

The recent tweet still raises many questions about how FTX handled users’ funds. One Twitter user mentioned Alameda holding margin positions with user funds.

The ex-CEO started the Twitter thread with the word “what” followed by a series of cryptic one-letter tweets that ultimately spelled out “HAPPENED.” One Twitter user speculated that this could be an attempt by Bankman-Fried to plead insanity if ever brought before a court.

Looks like someone’s planning an insanity defense — Alex Berenson (@AlexBerenson) November 14, 2022

In an interview with The New York Times, Bankman-Fried explained his cryptic tweets as follows:

“I’m making it up as I go,” and the series of tweets is “going to be more than one word.”

Looks like someone’s planning an insanity defense — Alex Berenson (@AlexBerenson) November 14, 2022

Bankman-Fried stepped down as CEO when his companies filed for bankruptcy but will assist with the transition to John Ray’s leadership.

Bankman-Fried’s crypto trading firm and FTX US, the company’s U.S. subsidiary, are among 130 firms involved in the bankruptcy proceedings.

Soumen is a dedicated researcher and writer in the field of cryptocurrencies, DeFi, NFTs, and GameFi projects.

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