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SBF Letter to Staff: ‘Maybe Still a Chance to Save FTX’

2 mins
Updated by Kyle Baird
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In Brief

  • SBF claims investors were waiting to pour in billions of dollars.
  • The company could be saved, but he no longer has a say.
  • Reports emerge of SBF and associates on a buying spree for property in The Bahamas.
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Former FTX CEO Sam Bankman-Fried (SBF) recently sent a letter to company employees. In addition to the usual string of apologies, he said that there might be a chance to save the company.

On Nov. 23, finance journalist Liz Hoffman shared a letter that SBF purportedly sent to company staff. In it, he detailed the dire state of collateral and liabilities the embattled group has.

The crypto collateral held by FTX and Alameda tanked fast from an estimated $60 billion to below $10 billion. The problems were compounded by the fact that the collateral included the exchange’s own token, FTT.

However, SBF made some revelations that could have possibly changed the outcome for FTX.

SBF: We Could Have Saved FTX

The former crypto billionaire said that FTX could still have value. He claims that investors were poised to pour in billions at the time of the bankruptcy declaration.

“We likely could have raised significant funding; potential interest in billions of dollars in funding came in roughly eight minutes after I signed the Chapter 11 docs,”

He added that between these funds, the remaining collateral, and the interest from other parties, “we probably could have returned large value to customers and saved the business.”

“Maybe there is still a chance to save the company,” he added. SBF still claims that there are billions of dollars in interest from new investors. However, he added that things are now out of his hands.

On Nov. 17, BeInCrypto reported that the new FTX CEO, John Ray, confirmed that SBF no longer had a role at the company.

While the journalist opined that the FTX collapse “appears to just be a run on the bank,” others were not convinced. Autism Capital, a crypto whistleblower, said that SBF was shirking responsibility.

“The takeaway is an absence of responsibility with zero admission that the factors that led to this debacle were in his control.”

Bahamas Buying Spree

On Nov. 23, Reuters revealed a property buying spree by SBF’s parents and senior executives. According to the article, they bought at least 19 properties worth around $120 million in the Bahamas over the past two years.

Additionally, one of the firm’s units spent $300 million in the Bahamas buying homes and vacation properties for its senior staff.

On Nov. 22, BeInCrypto reported that company tax returns claim that FTX and Alameda were running at a loss of $3.7 billion.  

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...