Tuesday, 06 Dec 2022

Founder of failed crypto exchange FTX apologises to ex-employees

Founder of failed crypto exchange FTX apologises to ex-employees


Founder of failed crypto exchange FTX apologises to ex-employees

The founder of the failed crypto exchange FTX has written to its former employees apologising for his role in its collapse and continuing to insist its downfall can be solely explained by a misplaced $8bn (£6.7bn).

Despite the mea culpa, however, Bankman-Fried said that the company was salvageable, and that if he had not been pressed into filing for bankruptcy in mid-November he could have saved it.

In the letter, Bankman-Fried reiterated claims that FTX was a fundamentally healthy business, presenting a narrative of its downfall that showed it with assets of $60bn, against only $2bn of liabilities, as recently as this spring.

Most of those customers are believed to be corporate clients and investment professionals, using the lightly regulated FTX International exchange to make risky leveraged bets on cryptocurrency values.

After the collapse of FTX, the online bank Starling announced a seven-month suspension of all customer deposits to cryptocurrency exchanges, citing the risk to consumers. The suspension would be reviewed in June 2023, the bank said.

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