The crypto community has voiced their opinions on former FTX CEO Sam “SBF’ Bankman-Fried’s “pre-mortem overview” of the collapse of FTX he published on Jan. 12 as a letter on Substack.
January 12, 2023
As previously reported by Cointelegraph, SBF denied the allegations made against him in the lengthy letter and maintained that FTX US had been “fully solvent” at the time the firm filed for Chapter 11 bankruptcy, with approximately $350 million in cash available.
Bankman-Fried further stated that FTX International had a substantial amount of assets (approximately $8 billion) when John Ray became CEO. According to Bankman-Fried, “No funds were stolen. Alameda lost money due to a market crash it was not adequately hedged for–as Three Arrows and others have this year.”
Cointelegraph reached out to a white-collar criminal lawyer and partner at Stakoe Partnership Solicitors, Richard Cannon, who shared his views on SBF’s “pre-mortem overview.” In response to whether Bankman Fried’s lawyers approved this, Cannon shared; “I don’t think this would have been done with the approval of his lawyers. Any pre-trial statement made with their approval would most likely come through them.”
“He’d better get it right because everything he says and has said can be used against him in his criminal trial.”
Unfortunately for Bankman Fried, the crypto community seemed unimpressed by his “pre-mortem overview.”
Wall Street Silver shared, “There is no mention of the billions in ‘loans’ he took out from customer money to fund his lavish lifestyle and political donations. I am shocked his legal team has not stopped this guy from talking.”
SBF released a Substack article with his version of events.— Wall Street Silver (@WallStreetSilv) January 12, 2023
There is no mention of the the billions in “loans” he took out from customer money to fund his lavish lifestyle and political donations.
I am shocked his legal team has not stopped this guy from talking. pic.twitter.com/8hTFgRhXva
Fintech analyst Peruvian Bull shared, “SBF is sitting in his parent’s mansion writing substack articles blaming everyone but himself for the FTX fraud. He was a genius when talking to VCs, now suddenly we’re supposed to believe he’s the most incompetent CEO in history.”
SBF is sitting in his parent's mansion writing substack articles blaming everyone but himself for the FTX fraud.— Peruvian Bull (@peruvian_bull) January 12, 2023
He was a genius when talking to VCs, now suddenly we're supposed to believe he's the most incompetent CEO in history.https://t.co/BHwf7opIA2
Appellate attorney Michael Tex Duncan commented, “So it looks like SBF is no longer tweeting his crimes, but instead has a new substack to detail them.”
So it looks like SBF is no longer tweeting his crimes, but instead has a new substack to detail them.— Michael Tex Duncan - https://post.news/texduncan (@texduncan) January 12, 2023
Sure he can confess to things more than 280 characters at a time, but if they're like me, I'd wager the FBI agents on the case are still annoyed about having to sign up for it.
Bitcoin (BTC) researcher Andrew Bailey commented, “SBF has a new Substack post filled with reconstructed numbers and tables and estimates about Alameda’s final months. I read them. They’re a smokescreen. Obviously.”
SBF has a new Substack post filled with reconstructed numbers and tables and estimates about Alameda's final months. I read them.— Andrew M. Bailey (@resistancemoney) January 12, 2023
They're a smokescreen. Obviously.
Related: Sam Bankman-Fried: ‘I didn’t steal funds, and I certainly didn’t stash billions away’
On Jan. 12, Cointelegraph reported that Joseph Bankman, the father of Bankman-Fried, has reportedly hired an attorney as the criminal case against his son moves forward. Bankman reportedly advised and assisted his son on matters related to lobbying lawmakers in Washington, D.C. and may now be cooperating with the prosecutors behind SBF’s case.
However, It remains unclear whether Bankman has any criminal or civil liability related to the collapse of FTX.