Billionaire Sam Bankman-Fried counters speculation that his crypto empire could become insolvent
Billionaire Sam Bankman-Fried is countering rumors that his crypto empire relies on a balance sheet dominated by FTX Token (FTT).
ONE alleged The balance sheet from Alameda Research spurred speculation that Bankman-Fried’s business is overly dependent on FTT, suggesting the company could spiral if the value of FTT plummets.
Alameda Research is the digital asset trading firm Bankman-Fried founded while FTT is the native token of FTX, a crypto exchange that is part of the billionaire’s empire.
Bankman-Fried also served as CEO of Alameda, but in August 2021, traders promoted Caroline Ellison and Sam Trabucco to serve as co-CEOs so he could focus on FTX. Trabucco Resigned from his role in August, leaving Ellison as the sole head of the firm.
Bankman-Fried conversations the rumors unfounded.
“FTX has enough to cover all client holdings. We do not invest client funds (even in treasuries). We have processed all withdrawals, and will continue to be…
It is highly regulated, even when it slows us down. We have GAAP audits, with > $1b in excess cash. We have a long history of safeguarding our customers’ assets, and that remains true today.”
Bankman-Fried also shared a response from Ellison on her balance sheet.
Explains Ellison,
“A few notes about the balance sheet information that has been circulating recently:
– the specific balance sheet is for a subset of our business units, we have > $10 billion of assets not reflected there
– the balance is breaking out some of our largest long positions; we obviously have fuses that are not listed
– given the tightening in the crypto credit area this year, we have now returned most of our loans.”
FTT is trading at $17.96 at the time of writing and is down almost 20% in the last 24 hours.
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