John J. Ray III, the exchange’s new CEO, used the company’s official Twitter handle to reiterate the leadership transition at the troubled trading platform. Since Bankman-Fried, the previous leader, has been tweeting out explanations and other remarks that make headlines and stir up Crypto Twitter. It’s safe to assume that Ray disapproves of this sudden openness.
Ray Makes Twitter Statement
According to a statement that Ray has tweeted, “As previously disclosed, Mr. Bankman-Fried resigned from FTX US, [FTX], and Alameda Research Ltd. And its, directly and indirectly, owned companies. Mr. Bankman-Fried no longer has an ongoing role at FTX US, [FTX], or Alameda Research Ltd. Therefore, he doesn’t speak on their behalf.”
On November 14, Bankman-Fried started a peculiar Twitter thread in which he over 40 or more hours. He gradually wrote out “What HAPPENED” over nine tweets. And then said he was engaging with authorities, trying to “do right by clients.”
After Vox published a story last night that included a string of Twitter D.M.s from Bankman-Fried to a reporter, the new CEO of FTX issued the following response.
During their long discussion, Vox questioned SBF whether his emphasis on efficient altruism and rescuing out crypto firms was “mainly a facade. Yes, Bankman-Fried said in agreement. “That’s not the entirety of it, but it sure is a lot,” he said.
SBF tweeted, stating that he was chatting to “a buddy of mine” and that his communications “were not supposed to be made public, but I assume they are now.” While he did not directly mention the Vox writer, his tweets came after the piece was published.
The next day, on November 16, he started detailing the leverage and finances of FTX and its sibling trading business, Alameda Research. Alleging FTX’s leverage was over $13 billion, rather than $5 billion, as he had claimed previously.
Bankman-Fried has been trying to clear the air about the sudden demise of his former company, FTX, via tweets and other public statements. However, the collapse of FTX has left well over customers worldwide without access to one’s investments and appears to have set off a contagion affecting other crypto firms.
FTX’s Downward Spiral
FTX’s downward spiral began in early November. On November 11, the exchange and its 130 worldwide subsidiaries filed for Chapter 11 bankruptcy protection in the United States.
The fall of FTX began with a CoinDesk story and resulted in insolvency worries, a retracted buyout proposal from Binance, a withdrawal stop, and Chapter 11 bankruptcy protection. Nevertheless, bankman-Fried has remained active on Twitter, sharing his ideas and opinions with the community.
On November 11, following FTX’s bankruptcy filings, John J. Ray III took over as CEO. He is well-known for being in charge of the bankruptcy of the fake energy company Enron. Which had about $63.5 billion in assets and was the most prominent business failure in U.S. history.
