Sam Bankman-Fried Launches Substack: ‘I Didn’t Steal Funds’
Becoming a member of the ranks of different influential outcasts, FTX founder Sam Bankman-Fried launched a Substack on Thursday, through which he once more proclaimed his innocence.
“I didn’t steal funds, and I actually didn’t stash billions away,” he wrote.
The 30-year-old, at the moment beneath dwelling detention at his mother and father’ home close to Stanford, is accused of perpetrating a large fraud and utilizing buyer deposits at FTX—his crypto change—to bail out his cryptocurrency hedge fund, Alameda Analysis.
Bankman-Fried was indicted on eight counts in December, together with wire fraud, conspiracy to commit securities fraud, and conspiracy to commit cash laundering. Later that month he was launched from jail on a $250 million bond. He subsequently pleaded not responsible to all prices; a trial is tentatively scheduled for October.
In his inaugural Substack put up, Bankman-Fried parroted most of the arguments he made in media appearances previous to his arrest. FTX’s collapse, he argued, was not the results of rampant fraud, however of failures by Alameda’s executives to “sufficiently hedge towards the chance of an excessive market crash.” The breaking level got here final fall, he claimed, when the CEO of rival agency Binance provoked “an excessive, fast, focused crash” by encouraging a financial institution run on the enterprise.
Bankman-Fried tweeted out a hyperlink to the Substack on Thursday morning, confirming its authenticity.
Within the put up, he additionally insisted that FTX’ U.S. enterprise remains to be totally solvent, and he referred to as it “ridiculous” that American customers haven’t but been “made complete.”
As for FTX’ worldwide operations, he lamented his decision-making on the firm, however much less about his risk-taking than his settlement to file for chapter. The submitting, he mentioned, got here after a stress marketing campaign from considered one of FTX’ authorized advisors, Sullivan & Cromwell.
“I imagine that, had FTX Worldwide been given just a few weeks, it may probably have utilized its illiquid belongings and fairness to boost sufficient financing to make prospects considerably complete,” Bankman-Fried wrote. “Since [Sullivan & Cromwell] pressured FTX into Chapter 11 filings, nonetheless, I fear that these pathways might have been deserted. Even now, I imagine that if FTX Worldwide have been to reboot, there could be an actual chance of consumers being made considerably complete.”
A spokesperson for Bankman-Fried declined to remark. Sullivan & Cromwell and attorneys for former Alameda Analysis CEO Caroline Ellison didn’t instantly reply to inquiries.
The fallen billionaire insisted that he’s “dedicating almost all of my private belongings to” serving to prospects who acquired burned. “I’ve, as an example, provided to contribute almost all of my private shares in Robinhood to prospects–or 100%, if the Chapter 11 staff would honor my [directors and officers] authorized expense indemnification,” he wrote. (That stake seems to have been seized by authorities anyway.)
In his put up, Bankman-Fried appeared to acknowledge that his popularity has imploded. “I’ve been, regrettably, sluggish to reply to public misperceptions and materials misstatements,” he wrote. There’s rather more to say about his downfall, he continued, “However not less than it is a begin.”