Sam Bankman-Fried Disputes FTX US ‘Shortfall’ Claims, Critics Skeptical of Excel Spreadsheet Defense

Following an update from FTX debtors astir the $5.5 cardinal discovered by administrators during an investigation, erstwhile FTX CEO Sam Bankman-Fried (SBF) took to Twitter to stock a blog station from his Substack newsletter. SBF stated that the presumption published by litigation steadfast Sullivan & Cromwell is “extremely misleading” and that FTX US is solvent and “always has been.”

SBF Claims Misrepresentation by Litigation Firm, Twitter Critics Doubt Solvency

Sam Bankman-Fried (SBF) is providing further accusation successful effect to the caller property merchandise and 20-page presumption papers issued by FTX debtors and existent restructuring administrators. The property merchandise reported that investigators recovered $5.5 cardinal successful liquid assets. In response, SBF posted a new blog connected his Substack newsletter and stated connected Twitter, “FTX US is solvent, arsenic it ever has been.” The blog station echoes this connection and asserts discrepancies betwixt Sullivan & Cromwell’s (S&C) reporting and SBF’s spreadsheet.

He disputes the assertion successful the presumption that FTX US has a “shortfall” and maintains that FTX US is not insolvent. “S&C claims that FTX US has a shortfall,” SBF said successful his latest blog post. “That assertion is false. Based connected S&C’s ain information provided successful the aforesaid tribunal presentation, FTX US had astir $609 cardinal of assets ($428 cardinal successful slope accounts, positive $181 cardinal successful tokens) backing astir $199 cardinal successful lawsuit balances. FTX US was solvent erstwhile it was turned implicit to S&C, and astir surely remains solvent today.”

Despite SBF’s claims, respective radical connected societal media mocked the FTX co-founder and specifically criticized his Excel spreadsheet. “Bro typed retired a mates of numbers successful 5 mins reasoning it’s gonna beryllium his get retired of jailhouse escaped card,” 1 idiosyncratic tweeted successful effect to SBF’s latest blog post. “Nice Excel expanse that a 5-year-old could marque — LOL — Means nothing. Somebody unopen this dude up forever,” different idiosyncratic wrote. SBF’s claims were met with skepticism and his declarations did not look to beryllium convincing to many.

Missing Funds, Lack of Auto-Liquidation Issues, and ‘Questionable FTX US Redemption System’ Remain Unaddressed by Former FTX CEO

A fig of radical questioned wherefore SBF did not remark connected the $10 cardinal successful missing funds and erstwhile again, his blog station did not code the accusations made successful the presentation. For example, pursuing SBF’s past blog post, Bitmex co-founder Arthur Hayes criticized the FTX co-founder for not addressing the lack of auto-liquidation associated with Alameda Research. The latest presumption from FTX debtors claims “Alameda Research and a tiny radical of individuals had the quality to region assets from the exchange.” Furthermore, the removal of funds was ne'er recorded connected the company’s ledger, and the funds allegedly derived from FTX speech customers.

SBF did not code that circumstantial taxable astatine all. It is absent from his statement against Sullivan & Cromwell’s presentation. People connected Twitter brought this up to SBF connected different Twitter threads astir the subject, arsenic SBF’s tweets are acceptable to “private” mode and cannot beryllium commented on. “This does not explicate the allegations of embezzlement to which your colleagues person pleaded guilty,” 1 idiosyncratic connected Twitter tweeted successful effect to SBF’s latest claims. One idiosyncratic told the media that SBF’s claims look to beryllium intentional “misdirection” and “potentially for legal/defense purposes.”

It is harmless to accidental that Bankman-Fried’s claims and caller blog posts are not being taken seriously, and his Excel spreadsheet method is not convincing the wide public. Some radical wondered if SBF was “presumably tweeting against the proposal of ineligible counsel.” The latest blog station was not overmuch antithetic from the past station SBF wrote, arsenic they some neglect to explicate a fig of issues raised by Bankman-Fried’s co-workers — erstwhile Alameda CEO Caroline Ellison and FTX co-founder Gary Wang. Furthermore, grounds has emerged astir however “traders whitethorn person utilized a questionable FTX US redemption system” for Solana-bridged assets.

Conor Rogan, a manager astatine Coinbase who often tweets astir onchain activities, said this redemption strategy could complicate the bankruptcy process. “From November 9th until withdrawals were halted a fewer days later, traders whitethorn person utilized a questionable FTX US redemption strategy to funnel [tens of millions] retired of the exchange,” Rogan said. “This could complicate bankruptcy proceedings and further telephone into question FTX-FTXUS separation claims,” helium added. Rogan discussed a synthetic Solana-based bitcoin (BTC) token called “sollet (soBTC)” which broke its peg erstwhile FTX’s troubles were engulfed successful flames. Despite the fiscal issues, FTX US inactive processed sollet redemptions connected a 1:1 basis.

The redemptions inactive occurred portion sollet was trading for overmuch little than BTC’s spot price, and Rogan believes the “toxic redemptions” oregon “swapping unbacked ETH and BTC” led to the imaginable nonaccomplishment of implicit $40 million. “FTX US would presumably person 1,700 existent BTC, alternatively of 1,700 soBTC worthy near-zero connected the unfastened marketplace today,” Rogan tweeted. The onchain researcher noted, however, that the grounds was his ain “speculative findings based connected probe into FTX US’s Solana code and discussions with members of the Solana community.” Notably, pursuing Rogan’s Twitter thread, SBF decided to reply to the claims made.

“I’m reasonably assured that FTX US’s excess currency connected manus is overmuch larger than the size of the wrapped plus contented to the grade determination is one,” SBF wrote successful reply to Rogan’s Twitter statements.

Once again, SBF’s remark astir the sollet (soBTC) contented was met with skepticism and criticism soon aft helium published the tweet. “You conscionable said they were solvent. Now you’re ‘fairly confident?'” 1 idiosyncratic asked the FTX co-founder. “I’m reasonably assured you volition walk a agelong clip successful national prison,” different idiosyncratic tweeted. Rogan’s Twitter thread and SBF’s effect further item that radical bash not look to beryllium accepting the erstwhile FTX CEO’s statements. “Nobody believes thing you accidental and they ne'er will,” 1 idiosyncratic replied to SBF’s sollet commentary connected Twitter.

What are your thoughts connected Sam Bankman-Fried’s claims of FTX US’ solvency and the accusations of embezzlement and missing funds? Leave your comments below.

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