FTX founder Sam Bankman-Fried says he “did not steal any funds” in an unusual blog post following the arrest.

“When Alameda became illiquid, so did FTX International because Alameda had a margin position open on FTX,” Bankman-Fried wrote.

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Last month, two of his closest associates pleaded guilty to defrauding the trading platform’s clients and agreed to cooperate in the prosecutor’s investigation.

Caroline Ellison, former executive director of Alameda, said in her hearing that Bankman-Fried and other FTX executives received billions of dollars in secret loans from Alameda.

Bankman-Fried was released on $250 million ($359 million) bail in December and placed under house arrest at his parents’ home in Palo Alto, California, which has been pledged as security for his court return .

In the post, Bankman-Fried also said that FTX’s US wing is “fully solvent” and that its international unit has many billions of dollars in assets.

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“If there were a reboot, I think there’s a real chance customers could be essentially restored,” he wrote.

The comments came after an attorney for FTX told a Delaware federal bankruptcy court on Wednesday that the exchange had found more than $5 billion in cash and that the company was planning non-strategic investments with a book value of $4.6 -dollars sell billion.

This excludes assets seized by the Securities Commission of the Bahamas, where FTX was based and where Bankman-Fried lived before his extradition to the United States. Bahamian authorities say they have seized $3.5 billion, but FTX says those funds are only worth $170 million.

On Wednesday evening, Bankman-Fried responded to a user named @wassielawyer on Twitter who said a sale of the FTX exchange was viable. “Yes, I believe that is and always has been the best recovery scenario for customers,” Bankman-Fried wrote.

FTX filed for bankruptcy on November 11, the same day Bankman-Fried resigned as CEO.

Reuters

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https://www.smh.com.au/business/companies/ftx-founder-says-he-didn-t-steal-funds-in-unusual-post-arrest-blog-post-20230113-p5cc95.html?ref=rss&utm_medium=rss&utm_source=rss_business FTX founder Sam Bankman-Fried says he “did not steal any funds” in an unusual blog post following the arrest.

Brian Lowry

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