Billionaire Sam Bankman-Fried Counters Speculation That His Crypto Empire Could Become Insolvent

Billionaire Sam Bankman-Fried is countering rumors that his crypto empire is counting on a steadiness sheet dominated by FTX Token (FTT).

A purported steadiness sheet from Alameda Analysis spurred hypothesis that Bankman-Fried’s enterprise depends too closely on FTT, suggesting that the corporate may spiral if the worth of FTT plummets.

Alameda Analysis is the digital asset buying and selling agency Bankman-Fried based whereas FTT is the native token of FTX, a crypto change that’s a part of the billionaire’s empire.

Bankman-Fried used to additionally function chief government of Alameda however in August 2021 promoted merchants Caroline Ellison and Sam Trabucco to function co-CEOs so he may deal with FTX. Trabucco stepped down from his position this previous August, leaving Ellison as the only head of the agency.

Bankman-Fried calls the rumors unfounded.

“FTX has sufficient to cowl all shopper holdings. We don’t make investments shopper belongings (even in treasuries). We now have been processing all withdrawals, and can proceed to be…

It’s closely regulated, even when that slows us down. We now have GAAP audits, with > $1b extra money. We now have a protracted historical past of safeguarding shopper belongings, and that is still true as we speak.”

Bankman-Fried additionally shared a response from Ellison on his steadiness sheet.

Explains Ellison,

“Just a few notes on the steadiness sheet information that has been circulating just lately:

– that particular steadiness sheet is for a subset of our company entities, now we have > $10 billion of belongings that aren’t mirrored there

– the steadiness sheet breaks out a number of of our greatest lengthy positions; we clearly have hedges that aren’t listed

– given the tightening within the crypto credit score house this 12 months, we’ve returned most of our loans by now.”

FTT is buying and selling at $17.96 at time of writing and is down practically 20% up to now 24 hours.

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