- SBF denied stealing money and hiding billions of dollars in the letter
- According to reports, Bankman gave his son advice and assistance on lobbying lawmakers in Washington, and he may now be working with the prosecutors involved in SBF’s case.
The “pre-mortem review” of FTX’s collapse that former CEO Sam Bankman-Fried, released as a letter on Substack on January 12 has drawn criticism from the cryptocurrency community.
As the media reported, SBF refuted the accusations against him in the lengthy letter and insisted that FTX US had been solvent when the company filed for Chapter 11 bankruptcy, with almost $350 million cash on hand. Bankman-Fried added that when John Ray took over as CEO, FTX International had a substantial asset base (about $8 billion). Bankman-Fried stated that no money was stolen.
Nevertheless, the crypto community didn’t seem impressed by SBF’s “pre-mortem overview.”
Wall Street Silver said, “There is no mention of the billions in ‘loans’ he pulled out of consumer money to finance his opulent lifestyle and political donations.”
“SBF is sitting in his parent’s mansion writing stack pieces blaming everyone but himself for the FTX fraud,” Fintech researcher Peruvian Bull stated. He further stated that SBF was brilliant when he spoke to the venture capitalists, but now we’re supposed to think he’s the stupid CEO.
So it appears that SBF is no longer tweeting about his crimes, but rather has a new substack to detail them, said appellate lawyer Michael Tex Duncan.”SBF has a new Substack post loaded with reconstructed figures, tables and projections regarding Alameda’s final months,” wrote bitcoin expert Andrew Bailey.
In light of the development of the criminal case against his son, Bankman-father, Fried’s Joseph Bankman was said to have retained legal counsel on January 12. According to reports, Bankman gave his son advice, and now he may be assisting the prosecutors handling SBF’s case.
It is still unknown, though, whether Bankman may be held responsible for the downfall of FTX in a legal or criminal capacity.
Although SBF’s message may have had good intentions, the crypto community has not responded well. The lack of fresh or insightful observations in the letter has led to a generally negative response from the community. It is crucial for people and businesses operating in the cryptocurrency industry to comprehend that the public wants information that is simple, clear, and useful. The cryptocurrency market moves quickly and constantly changes; therefore, it’s critical for experts and thought leaders to offer insights in a timely and understandable way.