• Former FTX CEO Sam Bankman-Fried (SBF) has released a Substack report detailing his account of what happened at FTX.
• He claims that no funds were stolen and attributes the collapse of FTX to Alameda’s inability to hedge against a market crash adequately.
• SBF believes that FTX can still recover with the right plan of action.

Sam Bankman-Fried, former CEO of FTX, has released a Substack report detailing his account of what happened at the trading platform. In it, he claims that no funds were stolen, and that the collapse can be attributed to Alameda’s failure to adequately hedge against a market crash.

Alameda, a hedge fund run by SBF, had grown to a balance sheet of roughly $100 billion in Net Asset Value, $8 billion in net borrowing, and $7 billion in liquidity on hand. However, over the course of 2022, a series of large broad market crashes occurred in both stocks and crypto, leading to a ~80% decrease in the market value of its assets. In November 2022, the situation was made worse by a targeted crash precipitated by the CEO of Binance, thus ultimately making Alameda insolvent.

Despite this, SBF has expressed optimism that FTX can still be recovered. He compared the situation to that of Voyager and Celsius, two cryptocurrency companies that emerged from similar situations. He believes that with the right plan of action, FTX can emerge from this crisis unscathed. He is currently confined to his parent’s house according to the terms of his bail, and is working on a recovery plan.

Ultimately, the future of FTX is uncertain, but SBF is hopeful that the situation can be remedied. He is urging investors to remain patient and trust that the right course of action will be taken.