Sam Bankman-Fried Discloses Current Situation At FTX After Bankruptcy

FTX former CEO Sam Bankman-Fried plans to raise fresh capital to make customers whole after filing for Chapter 11 bankruptcy on Friday. Sam Bankman-Fried asserts his goal is to “raise liquidity, make customers whole, and restart.” He also disclosed the current liquid, semi-liquid, and illiquid assets at crypto exchange FTX. However, FTX may have over a million in creditors and institutional investors are pulling out of FTX.

FTX Sam Bankman-Fried Hopes To Raise Liquidity

Sam Bankman-Fried in the latest tweet on November 16 as part of his slowest tweet thread disclosed that beleaguered crypto exchange FTX plans to raise liquidity and make customers whole. Moreover, he believes FTX has -$8 billion liquid, $5.5 billion semi-liquid, and $3.5 billion illiquid assets. This will likely be the last tweet in the thread.

“I know you’ve all seen this, but here’s where things stand today, roughly speaking. [LOTS OF CAVEATS, ETC.] And yeah, maybe that $9b illiquid M2M isn’t worth $9b (+$1b net). OTOH–a month ago it was worth $18b; +$10b net.”

SBF in previous tweets said FTX was handling almost $10 billion per day of volume and transfers in billions. However, the leverage was more than he realized and the market crash caused a liquidity crunch. Therefore, he plans to “raise liquidity, make customers whole, and restart.”

Sam Bankman-Fried thinks he may be able to raise funding from investors. However, he also agreed with his failure and that customers may not get more than what’s already there. Meanwhile, FTX investors including Softbank and Sequoia are marking their investments to “zero” in the beleaguered crypto exchange.

Furthermore, he believes his current goals are clean up and focus on transparency, as well as making customers whole. He plans to put customers first before investors.

Three Arrows Capital co-founder Zhu Su commented suggesting auctioning these “assets” in a dutch auction, “starting from your criminal mark price, and see where buyers show up.”

FTX Contagion Spreading Rapidly

Several entities are now reporting withdrawal issues and bankruptcy as the FTX contagion spreads. Crypto lender BlockFi plans to file for bankruptcy as FTX collapses. FTX Bahamas seeks Chapter 15 bankruptcy protection and FTX Australia’s license has been suspended by The Australian Securities & Investments Commission.

At the time of writing, FTX Token (FTT) price is trading at $1.74, up almost 16% in the last 24 hours. However, the token dumped over 90% in a week amid the FTX crisis.