Elon Musk and CEO of the notorious exchange has asked for his coworkers’ forgiveness in yet another letter to SBF’s employees that has been leaked. He also promises to return in time to correct the errors he made in the previous letter.
Musk responded by humorously implying that SBF is prepared to enlist the aid of numerous media outlets to assist him clear his name in the eyes of investors and potential creditors. The new owner of Twitter thinks that SBF is promoting the CEO’s innocence on traditional and online media sources by exploiting his contacts.
The letter makes it abundantly evident that Bankman-Fried is attempting to place some of the blame for the liquidity issue and the insolvency of the exchange on unanticipated market conditions that dried up FTX’s collateral.
SBF added that he was hoping for assistance from the largest exchange in the industry, which has offered to save FTX. However, after reviewing the company’s financial statements, CZ, the CEO of Binance, made the decision not to get involved. The crypto world was unaware of the gaping hole FTX has in terms of current liabilities.
Unfortunately, given the opaqueness of FTX’s bookkeeping procedures, it is impossible to verify if Bankman-assertion Fried’s refers to the $60 billion in collateral. On-chain sleuths haven’t yet located every cold and hot wallet that FTX employed to handle an unexpected rise in withdrawals.
The majority of the industry feels that the exchange had just enough liquid reserves at the time of publication to cover a rapid increase in the number of withdrawals. This thesis is supported by transactional activity on the exchange’s hot wallets.
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