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SBF makes Big Claims While Making Staunch Promises

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Sam Bankman-Fried, also known as SBF, the founder of the defunct cryptocurrency exchange, has published a post-mortem on the FTX-Alameda crash. The former CEO has outlined the convergence of three significant occurrences that ultimately caused the company’s downfall. The final one placed the blame on Changpeng Zhao, otherwise known as CZ, the CEO of Binance.

The first occasion, in accordance with Bankman-Fried, was Alameda’s statistics in 2021. The net asset value on its balance sheet was close to $100 billion. In contrast, net borrowing and available cash were $8 billion and $7 billion, respectively. The investment arm’s failure to “sufficiently hedge its market exposure” was the second occurrence. And the stock and cryptocurrency markets lost the majority of their value through 2022.

The crypto tycoon mentioned the CEO of Binance as the final and subsequent reason, saying,

“In November 2022, an extreme, quick, targeted crash precipitated by the CEO of Binance made Alameda insolvent.”

A market frenzy resulted after Binance’s CEO’s announcement that it would sell all of its remaining FTT tokens following a revelation that Alameda’s balance sheet consisted primarily of FTT. According to CZ, this action was taken as part of its “post-exit risk management,” and they “won’t pretend to make love after divorce,” they added.

SBF stated in his post-mortem,

“But the November crash was a targeted attack on assets held by Alameda, not a broad market move. Over the few days in November, Alameda’s assets fell roughly 50%; BTC fell about 15%–only 30% as much as Alameda’s assets–and QQQ didn’t move at all”

SBF Blames Binance CEO’s Targeted Crash

According to SBF, this caused “Alameda’s contagion” to spread to FTX and other organizations. Additionally, Bankman-Fried argued that FTX US was totally solvent and should be able to make its clients whole again despite the demise of both organizations.

Additionally, according to SBF, FTX US had more than $350 million in net cash when John Ray took over as CEO and the exchange started the bankruptcy process. He asserted that net cash exceeded customer balances and called the time it took for customers to receive their money back “ridiculous.”

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Additionally, the former CEO asserted that he had “offered” all of his Robinhood shares to investors, adding that it would have been 100% if the bankruptcy team had assumed responsibility for D&O legal expense indemnification.

The former CEO said,

“FTX International has many billions of dollars of assets, and I am dedicating nearly all of my personal assets to customers.”

Here’s How Solana Stands Tall By Gaining New Users Despite FTX Storm

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In 2022, a wide range of assets saw severe revisions. Unquestionably, Solana [SOL] was one among them. SOL experienced a 94 percent year-to-date [YTD] decline, compared to a 60–70% decline for the majority of crypto assets. SOL became one of the greatest losers of 2022 as a result of this.

Since its debut, SOL has been the topic of the cryptocurrency community. The network received praise for its quick transactions and inexpensive costs. Many chose the item and thought it was a wise investment.

Although many believed that the FTX upheaval ended the asset’s winning streak, the head of strategy and communications for the SOL foundation believes otherwise.

Austin Federa, head of strategy and communications at the Solana Foundation, claims that despite the failure of cryptocurrency exchange FTX, the Solana network continues to draw users and developers. Federa stated to local media on Tuesday that despite the FTX infection, the network has experienced a rise in on-chain activity.

She went onto say,

“What you’ve seen is real staying power for both users and developers to build on the network.”

Sam Bankman-Fried, the now-disgraced founder of the insolvent FTX, was a vocal supporter of SOL. In fact, according to a blog post published by Solana in November, FTX and Alameda Research, a related trading company that Bankman-Fried also owned, bought SOL tokens from the foundation and its sister company Solana Labs more than $58 million after the platform went live with a test network.

Federa claimed that the “initial attention” was beneficial and may have aided in the network’s growth and current unrest since other SOL-based decentralized finance (DeFi) projects left the ecosystem.

Solana’s Bonk, An Adding Factor?

Federa claimed that despite the exit of non-fungible tokens (NFT) projects like DeGods and Y00ts, developers are still signing up for the network. Federa cited the NFT startup Bonk (BONK), whose “airdrop” saw a significant amount of its tokens distributed to Solana users and resulted in a Tuesday 20% increase in SOL.

She further added,

“You’re not really seeing any projects migrate off of Solana that need the performance and power of the network……. There’s a lot of stuff that you can only build on Solana, and those developers are continuing to build here.”

Sam Bankman-Fried Shared Details Of Almeda Research With Forbes

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The FTX founder, Sam Bankman-Fried, recently made a series of public appearances, and the media is now getting his perspective on the situation. That story underlined his diminished involvement in particular transactions outside of FTX. But according to reports, Sam Bankman-Fried submitted Forbes a detailed report on the financials of Alameda Research.

According to a Forbes exclusive, the former FTX CEO divulged a wealth of information about both his own interests and those of the platforms he built. Additionally, that insight contained a wealth of information on Alameda Research’s business dealings.

Sam Bankman-Fried’s Arguments Questioned By Forbes

The most tragic event to affect the cryptocurrency community to date is the demise of FTX. Not only has the market as a whole been affected by its failure, but one of its most promising young minds has had his or her reputation permanently damaged.

Former billionaire Sam Bankman-Fried established FTX and hedge fund Alameda Research. He is now coming out in response to accusations, debate, and platform bankruptcy. insisting that the amount of time he spent working on Alameda Research each day was insufficient to plan the alleged crime.

In his remarks last week at the DealBook Summit, Bankman-Fried added,

“Alameda is not, like, a company that I monitor day-to-day. It’s not a company I run. It’s not a company I have run for the last couple of years. And Alameda’s finances I was not deeply aware of.”

But so far, his defence hasn’t seemed very convincing. In a new exclusive, Forbes questions their credibility even further. Sam Bankman-Fried is reported to have given financial information about Alameda Research to the magazine.

“Most of the world’s billionaires rather not discuss their wealth. Not Sam Bankman-Fried,” Forbes responded to his appearance at the DealBook Summit. The article went on to say that Bankman-Fried frequently sent spreadsheets, documents, and screenshots. Information relaying everything about his ownership interests, possessions, and wallets holding different cryptocurrencies.

“Updates like this arrived periodically- practically whenever Forbes asked for them,” the report stated. The study further claims that these data would be delivered between January 2021 and March 2022.

According to Forbes, Bankman-claims Fried’s that he has no connection to Alameda Research is, at the very least, not entirely accurate. According to Forbes, “He had detailed knowledge of some of Alameda’s holdings and at least some knowledge of transactions it was making, especially 2021.”

Here’s How FTX Collapse Could Be A Domino Effect Of Terra Collapse

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Numerous projects like FTX went under in the world of cryptocurrencies. Prominent cryptocurrency platforms were observed declaring bankruptcy one after another. The biggest fall was undoubtedly SBF’s firm collapse. While many were busy accusing Sam Bankman-Fried (SBF) of fraud and poor management, a new study showed how Terra might have precipitated the SBF’s empire’s precipitous fall.

According to a thorough investigation by the blockchain analytics platform Nansen, Do Kwon’s infamous project Terra may have contributed to the crash of FTX. The study claims that Alameda Research and SBF’s firm were never clearly divided. It should be emphasized that around the moment TerraUSD fell, SBF’s firm’s strategy to keep Alameda alive started to unravel.

The report stated,

“Piecing together the pieces from our on-chain investigation, it was evident that the Luna/Terra collapse revealed a deep flaw between Alameda and FTX’s muddled relationship. There were significant FTT outflows from Alameda to FTX around the Terra-Luna/ 3AC situation.”

FTX And Almeda: The Unbreakable Bond?

Wallets owned by Alameda Research, which was co-founded in 2017, were communicating with wallets that would later come under FTX’s possession before the exchange began operating back in May 2019.

The data, according to the researchers, clearly demonstrates that Alameda was either significantly involved in the construction of the exchange or that there was no evident differentiation between Alameda and SBF’s firm at the time, and possibly even both, despite the comparatively low volume of $160k.

Despite repeated denials that the aforementioned businesses were connected, it was revealed that Alameda had $5 billion worth of FTT on its balance sheet.

According to the Nansen researchers, Alameda may have borrowed from the exchange since it would have had few other options to pay back the recalled loans in the wake of the Terra collapse. On-chain records show that $4 billion in FTT was transferred from Alameda to FTX at about the same time that Terra lost its peg and lost $40 billion.