Former FTX CEO Sam Bankman-Fried, also known as SBF, apologized once again to exchange employees in a letter explaining the collapse.
According to a Nov. 22 letter reviewed by , Bankman-Fried told employees about the causes of FTX’s liquidity crisis and subsequent bankruptcy. He largely confirmed the information published by the media amid the collapse of the exchange, citing the decline in the crypto market as one of the factors that led to the decrease in the value of FTX collateral assets. November’s “run on the bank,” according to the former CEO, helped cut the exchange’s collateral to around $9 billion on $8 billion in liabilities.
“I never wanted this to happen,” SBF said. “I didn’t realize the full extent of the margin position, nor did I realize the magnitude of the risk associated with a hyper-correlated crash.”
Bankman-Fried described his role in the crash as a lack of oversight, stating that he should have been “more skeptical of high margin positions” and had more procedures in place to monitor and model crashes and bank runs. He said he planned to “catch up” with injured team members, but appeared to regret the events leading up to FTX’s bankruptcy:
“I believe that a month ago FTX was a thriving, profitable, innovative business. This means that FTX still had value, and that value could have been directed towards making everyone more whole. We could probably raise significant funding; potential interest in billions of dollars of funding emerged about eight minutes after I signed the chapter 11 paperwork.”
“There may still be a chance to save the company,” SBF said. “I believe there are billions of dollars of genuine interest from new investors that can go out of their way to help clients. But I can’t promise you anything will happen because it’s not my choice.”
Related: Sam Bankman-Fried tells investors: ‘We’ve become overconfident and reckless’ claims $13bn leverage
SBF resigned as CEO of FTX on November 11 in the same announcement in which FTX Group filed for US bankruptcy. Bankruptcy litigation in Delaware County continues, but on Nov. 22, a group of lawyers representing FTX debtors said the exchange’s assets remain at risk of cyberattacks. On November 11, an unknown person withdrew 228,523 ether (ETH) from FTX.