Ex-FTX Boss Sam Bankman-Fried (SBF) revealed the status of all kinds of assets on the FTX crypto exchange. He hopes the move will restore a level of trust and transparency in the eye of the public.
SBF wants to get new money to protect all registered users following the filing on Friday. However, he admits that achieving this goal would be a dream come true for him.
SBF was demoted by the board as CEO of the company this week and replaced by John Ray III after the company filed for bankruptcy. SBF claims that FTX has $8 billion in liquid assets, $5.5 billion in semi-liquid, and $3.5 billion in illiquid.
SBF previously tweeted that FTX processes nearly $10 billion in daily volume and billions of remittances. But, there was higher leverage than he thought, and the financial markets’ collapse led to a massive liquidity crisis.
Too Little Too Late
So, he plans to “seek fresh funds, keep customers happy and start afresh.” Sam Bankman-Fried thinks he can raise money from investors.
However, he admitted that he failed and that users might not retrieve all their funds from the platform. Nevertheless, FTX investors, notably Sequoia and Softbank, mark their investments in the ailing crypto exchange as “zero.”
He ended the tweet by noting that “not everyone necessarily agrees with it.” It is unclear how this information could be questionable.
Hence, there could be issues in the attribution of assets between the companies held by FTX or other factors that would make it difficult to account for the assets.
In addition, SBF’s short-term goals are cleanliness, transparency, and customer satisfaction. He believes that he should focus more on customer satisfaction than investors’ satisfaction.
Zhu Su, the co-founder of the failed crypto lender (3AC), proposed selling FTX’s “assets” at a Dutch auction. according to him, the auction should “start with a criminal pricing and see where the buyers would go.”
Several companies have begun to face difficulty in accessing their funds as well as bankruptcy issues as the effect of the FTX rages on.
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