He or she just can’t help himself: disgraced sociopath, record-breaking fraudster plus prolific Democratic donor – not necessarily in that order – Sam Bankman-Fried, has released another apology to his staff in a letter that will outlined a crash in “ collateral” to less than $9 billion from $60 billion dollars.
“ I didn’t suggest for any of this to happen, and am would give anything to be able to return and do things over again, ” the corpulent 30-year-old who may or may not be within the Bahamas apologized yet again in the message sent to employees Tuesday, although he really should be apologizing to the millions of clients who he wiped out. Alas, like the recurrent ramblings of a verrückter, Sam’s takeaway was that the particular implosion at FTX was the side-effect of an unfortunate bank run, and had nothing regarding SBF’s actions; that’s because SBF still refuses to take any responsibility for so what happened and makes zero admission that the factors that led to this historic bankruptcy had been in his control all together. Sam claims that he failed to “ realize the magnitude of risk. ” His main remorse – like this of any pathological individual – is that he obtained caught.
Nevertheless don’t believe us he was a sociopath? Read this:
I actually didn’t mean for any of this to happen, and I would give anything to be able to go back and do stuff over again. You were my family. We’ve lost that, and the old home is an clear warehouse of monitors. When I turn around, there’s no one left to talk to. I disappointed everyone, and when matters broke down I failed to communicate. I froze up in the face of pressure and leaks and the Binance LOI and stated nothing. I lost a record of the most important things in the turmoil of company growth . I care deeply regarding you all, and you had been my family, and I’m sorry.
No he isn’t, and if it wasn’t his fault, whose fault was it? Nicely, as he “ describes” the sequence of events, you see it was all the market’s fault as a slide in digital-asset markets in spring approximately halved collateral from $60 billion to $30 billion dollars, while liabilities were $2 billion. A combination of a credit score squeeze, a further selloff in virtual coins and a “ run on the bank” still left collateral at $9 billion ahead of FTX’s Nov. 11 bankruptcy, he wrote. The particular estimate for liabilities experienced reached $8 billion at that time. Here is how, in his words, that which was initially a $58 billion overcollateralized balance sheet ended up having more liabilities than assets.
“ I did not realize the full level of the margin position, neither did I realize the particular magnitude of the risk presented by a hyper-correlated crash, ” Bankman-Fried said. He failed to give exact details on the makeup of the collateral or the liabilities. If he did, it would look something like this chart from Morgan Stanley:
What happens next is what any sniveling sociopath posing as a CEO would say: I had no idea any of this might happen:
I did not realize the entire extent of the margin place, nor did I recognize the magnitude of the danger posed by a hyper-correlated crash.
In fact it is here, that we get the initial admission that something nefarious happened: i. e., loans – to related parties, such as the $4 billion “ given” from FTX in order to SBF – and the “ secondary sales” which we now knows SBF pocketed several $300 million for personal use.
The loans and secondary sales were generally used to reinvest within the business— including buying out Binance— and not really for large amounts of personal usage .
And so, ladies and gents of the jury, could you consider a $40 million penthouse to be a “ large amount of private consumption. ” And what about a private jet: in this day and age everyone needs one , how can one possibly define that as “ large amount of private consumption. ” As for the meaning associated with “ generally”, we are assured SBF’s close buddy Expenses Clinton will give him the appropriate definition of that word.
Prudently, there was zero mention in Sam’s meandering word salad that FTX acquired illegally commingled and delivered billions in customer funds to SBF’s personal hedge fund, Alameda , which despite frontrunning virtually every crypto transaction nevertheless lost $3. 7 billion before 2022 . That’s ok, Sam can discuss that in courtroom.
There was, nevertheless , the usual lies, including SBF’s increasingly warped representation associated with reality, which is to be expected: as noted above, they are after all, a sociopath.
We likely could have raised significant funding; potential fascination with billions of dollars of funding came in roughly eight mins after I signed the Section 11 docs. Between those funds, the billions of dollars of security the company still held, and the interest we’d received from all other parties, I think that we possibly could have returned large value to customers and rescued the business.
Narrator: none of this occurred, and none of this will happen either:
Maybe there still is an opportunity to save the company. I believe that there are billions of dollars of legitimate interest from new investors that could go to making customers whole. But I can’t promise you that anything may happen, because it’s not my choice.
Read that right: it is now all in the hands of the person who presided on the Enron bankruptcy and who seem to thinks your fraud can be way worse.
And speaking of fraud, there is one sentence in the entire letter where this pathological liar may have told the truth, if inadvertently:
… None of this particular changes the fact that this all of sucks for you guys, and it’s not your fault, and I’m really sorry about that. I’m going to do what I can to make it your decision guys— and to the customers— even if that takes more of my life. Yet I’m worried that even then I won’t be able to.
No, you will not be able to, but when it comes to “ the rest of your life”, both the “ guys” and the customers who you left with nothing because of your infinite avarice, fraud and incompetence, they all have an idea where you can invest it.
Whether or not that happens will depend on just how broken the US legal system is, where a few million in donations to prominent democrats may be all it takes to get a lifetime “ get out of jail” card.
SBF’s complete letter to his today former employees is beneath