Former FTX CEO Sam Bankman-Freed is now under house arrest and apparently very bored. So he decided to try himself as a blogger. Businessman posted open letter on the Substack website, in which he outlined his own version of the events that preceded the collapse of the popular exchange. Substack allows you to read material for free, and then express a desire to read authors’ articles for a small fee.
Of course, Bankman-Fried denies his guilt in the bankruptcy of the crypto empire. And the culprit for the collapse of FTX calls the head of the largest cryptocurrency exchange Binance, Changpeng Zhao. It was he who sank the FTX subsidiary Alameda Research.
“The extreme, rapid, targeted crash instigated by Binance’s CEO rendered Alameda insolvent,” Bankman-Fried wrote, adding that Alameda’s troubles spilled over to FTX and other related firms.
According to a former FTX executive, Zhao ran an extremely effective months-long public relations campaign against the exchange, which eventually resulted in several extremely bad days in early November, after which the company sank into inevitable bankruptcy.
Regarding the theft of user funds, Bankman-Fried claims that he is not guilty of anything:
I didn’t steal funds, and I certainly didn’t hide billions of dollars.
Bankman-Fried appears to be continuing his series of posts: “I have more to say about why Alameda failed to hedge, what happened to FTX US, which led to Chapter 11 bankruptcy, S&C, and much more. But at least it’s a start.”
Prosecutors allege that Bankman-Fried and other FTX executives used the assets of the crypto exchange to fund a subsidiary of Alameda Research without the consent or knowledge of users or investors.
In addition, the prosecution alleges that he conspired to commit securities fraud, conspired to commit money laundering, and violated United States campaign finance laws. Bankman-Fried is alleged to have made donations on behalf of others to bypass the $25,000 annual campaign funding cap. The former crypto billionaire faces 115 years in prison on the charges. The FTX trial is due in October.
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