After the thunderstorm, SBF explained to the public for the first time (full text): two mistakes were made

Original author: SBF

Original compilation: 0x214 & czgsws, BlockBeats

I'm sorry , this is what I want to say most.

I screwed up and I could have done better.

I should pass on more of my ideas during the recent period.

But obviously, when it comes to negotiating a deal with Binance, I'm constrained, especially not Allowing too much to reveal in public. Of course, it is my responsibility that we will eventually face this situation.

I would like to talk about an latest situation.

[The following is about FTX (not FTX US). Users of FTX US are safe and have no problems. ]

[The numbers stated below are considered rough counts. I'm just saying an approximate value. ]

FTX International (not FTX US) currently has a total asset/collateral market cap higher than customer deposits (moving with crypto market prices). But this is not the same as the liquidity of deliveries - as can be seen from the status of withdrawals. There has been a dramatic shift in liquidity, from high to nearly dry.

I'm still adding details to what I'm going to say, I made a serious mistake , and still screwed up twice.

For the first time, the poor internal labeling of bank-related accounts made my estimation of user margins appear a large deviation. My estimate is much lower than the real data.

What I thought Yes:

Leverage: 0x

USD Liquidity Ready to Deliver: 24x the average daily withdrawal amount

< p>

Actual situation:

Leverage: 1.7 times

Liquidity: only 80% of Sunday withdrawals

So, of course, When a bad thing happenswhen, things that make a bad situation worse will follow. On Sunday, we saw about $5 billion in withdrawals, the largest one ever.

This leads me to my second mistake.

This matter has taught me a lot, whether it is only from this matter See, on a more general level, it taught me a lot of things that I didn't do well before.

Moreover, my communication is not enough. I should have revealed more. I'm sorry - I was too busy with what I was doing to keep you all up to date.

So we have landed where we are today. This sucks and it's all my fault.

Sorry.

In any case, as of now, my first priority is to treat users fairly and be right Say the right thing. I will do my best to make this happen. Take responsibility and do your best.

So, now, we will spend a week doing everything we can to improve liquidity. Even if I can't make a promise, I won't give up trying. I'm willing to give anything if it saves the situation.

We are negotiating with many players, including letter of intent, term sheet, etc. For the results, we will wait and see.

Every penny, along with existing collateral, will go directly to users until we Feel that you have fulfilled your due obligations to your customers. After that, potential and existing investors, as well as employees who are striving to achieve their career aspirations, cannot be held accountable for whatever bad happens right now.

Because at the end of the day, I'm the CEO, which means it's up to me to make sure everything runs smoothly part of the matter. Personally, I should be the first to be held accountable. Obviously, I failed. sorry.

So, what does this mean? I'm not sure - it depends on what happens next week. But I'm here to disclose some things that I know for now.

First of all, Alameda Research is somehow closing the deal. None of the rumors about Alameda on Twitter were true, nor did Alameda do anything more outrageous. Regardless, soon Alameda Research will no longer be trading on FTX.

Secondly, if FTX is to weather the storm and continue operating, its first priority will be to maintain thorough Transparency, this transparency may be the principle that FTX should have been adhering to.

Moreover, all stakeholders will carefully review and monitor the governance of FTX. If that takes me out of the equation, I'm willing to accept that outcome. All stakeholders, investors, regulators, users, will play an integral role in how FTX operates. I firmly believe that they will do well.

But none of the above are things that need to be solved urgently. Say the right thing. That's all.

I would like to add a few more points: Everything I say is about FTX International. FTX US is an American trading platform that accepts American users, and its financial situation has not been affected by this bad drama. There is no problem with its liquidity, and all users can withdraw normally (minus gas fees, etc.). More information will be updated in the future.

For a specific sparring partner, maybe at some point in the future, I would like to say The words will not stop there, so let's do this first. You also know, "glass house".

(BlockBeats Note: Previously, SBF wrote in the last letter to employees: "On Binance: I shouldn't throw stones in a glass house.")

So now ,I just want to say: Well done, you win.

The above text should not be construed as any advice of any kind. When writing this article, my wording is not very careful, and there are no technical and legal implications. As much as I try to be honest, it's possible that I'm not describing the truth of the matter correctly. I'm not a good developer and there may be situations where the description is wrong.

Finally, I sincerely apologize.

< p> Will continue to share updates as soon as we have more news.

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