Bitmex Co-Founder Criticizes Former FTX CEO for Not Liquidating Hedge Fund Alameda

The Bitmex co-founder, Arthur Hayes, criticized Sam Bankman-Fried, the disgraced FTX co-founder, connected Friday aft Bankman-Fried published his archetypal blog station connected his caller Substack newsletter. “All this speech astir what Alameda did is misdirection,” Hayes insisted. “It doesn’t substance however they hedged oregon didn’t hedge, oregon what dogsh** was successful their portfolio.”

Bitmex Co-Founder Accuses Former FTX CEO of Avoiding Transparency

Arthur Hayes, co-founder of the cryptocurrency derivatives level Bitmex, criticized Sam Bankman-Fried, erstwhile CEO of FTX, pursuing a caller blog post. In the blog post, Bankman-Fried said “Alameda failed to sufficiently hedge its marketplace exposure” and “an extreme, quick, targeted clang precipitated by the CEO of Binance made Alameda insolvent.” Hayes, a prominent member of the cryptocurrency community, has important cognition astir cryptocurrency derivatives exchanges, arsenic Bitmex was 1 of the largest since its inception successful 2014.

“The speech should ne'er suffer wealth if a lawsuit gets liquidated,” Hayes tweeted connected Friday. “There is nary excuse [for] giving [your] hedge money Alameda an relationship with liquidation turned off. All this speech astir what Alameda did is misdirection. It doesn’t substance however they hedged oregon didn’t hedge, oregon what dogsh** was successful their portfolio,” the Bitmex co-founder added.

Hayes past told Bankman-Fried if helium genuinely wanted to explicate what happened, helium should archer the assemblage wherefore helium thought it was a bully thought to springiness his hedge money an relationship with the liquidation diagnostic turned off. Former Alameda CEO Caroline Ellison’s statements explicate that she afloat “understood that executives had implemented peculiar settings connected Alameda’s FTX.com relationship that allowed Alameda to support antagonistic balances successful fiat currencies and cryptocurrencies.”

Alameda’s Negative Balance Account: An Enigma Wrapped successful a Mystery

Furthermore, Bitcoin.com News reviewed a papers that allegedly belonged to Ellison that shows the erstwhile Alameda CEO had a leveraged FTX trading relationship that was successful the reddish by antagonistic $1.3 cardinal successful May 2022. Hayes emphasized that if Alameda was removed from the equation done a morganatic liquidation, Bankman-Fried’s now-defunct speech could inactive beryllium operational. “If you had liquidated Alameda similar immoderate different FTX punter, FTX would inactive beryllium operational. It’s conscionable that simple,” Hayes tweeted. The Bitmex CEO added:

So halt talking astir Alameda and archer america however you approached hazard absorption astatine the FTX level. Why were immoderate clients treated otherwise than others. I americium keen to recognize wherefore you thought turning disconnected liquidation connected a $bn notional presumption was prudent.

Many radical responded to the Twitter thread written by Hayes, and 1 idiosyncratic wrote: “Users paid for Alameda’s antagonistic relationship equity. Shameful.” Others repeated Hayes’s sentiment, saying “it truly is conscionable that simple.” “It’s truly the astir basal question SBF keeps skirting around. At slightest helium said helium was sorry,” different idiosyncratic added.

What are your thoughts connected the criticisms shared by Bitmex Co-Founder Arthur Hayes against erstwhile FTX CEO Sam Bankman-Fried? Share your thoughts successful the comments conception below.

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