SBF new reflection post: My only goal now is to make users happy

Original author: SBF

Original compilation: Odaily Planet Daily 

Yesterday, SBF reflected on the FTX crash and said With leverage far higher than expected, runs and market crashes drained liquidity, combined with self-confidence and carelessness leading to historic crashes. However, he emphasized that he is doing his best to this end, and will personally meet with regulators and work with the team to give priority to serving users, and then investors.

The following are SBF tweets, translated and organized by Odaily Planet Daily.

Not legal advice nor financial advice. That's all I remember, but my memory may be partially wrong. But I'll figure out what's going on. Now, let's talk about where we are today.  

As far as I know, after November 7th (errors may occur):

1) Alameda has more assets than liabilities (but not liquid assets);

2) Alameda holds in  FTX   Margin position;

3) FTX US assets are sufficient to cover repayment of all users.

But not everyone necessarily agrees with that. My only goal right now is to keep the users happy, and I'm doing my best for that. I will personally meet with regulators and work with the team to do my best for users, followed by investors, but users first.

My goal now is to keep cleaning up and focus on asset transparency so that users are minimally impacted.

A few weeks ago, FTX was handling about $10 billion in transaction volume and billions of transfers per day. But leverage was much higher than expected, and liquidity was drained by runs and market crashes. So what can I try to do? Improve liquidity, make up customers as much as possible, and start over. Maybe I'll fail, maybe I can't do anything. I did fail before, as you all saw. But all I can do is try. I've failed enough this month, but deep down I think there's still something I can do.

A rough estimate of the current situation:

Possessing liquid assets of -$8 billion;

Semi-liquid assets of $5.5 billion;

Illiquid assets of $3.5 billion Dollar.

Also, maybe $9 billion in semi/illiquid assets (mark-to-market, $1 billion net) isn't worth $9 billion now, but they are in Worth $18 billion ($10 billion net) a month ago.

I know you've all seen this, but roughly speaking, that's how it is today.

A month ago FTX was a valuable business. FTX has a daily trading volume of approximately $10 billion to $15 billion, an annual revenue of approximately $1 billion, and an equity value of as much as $40 billion. FTX has been hailed as a model of efficient running companies and is the darling of Silicon Valley. But (again, as far as I know, these numbers are approximate) most of the relevant assets plummeted by more than 50%. At the same time, there was a run on the exchange, with approximately 25% of customer assets being withdrawn every day. The leverage was as high as $13 billion, not the $5 billion previously thought. High leverage, a run on funds, and a total collapse in asset values all happened suddenly and simultaneously.

I was chatting with a friend of mine last night.

They published my information. These were not meant to be made public, but they are now made public anyway.

Well, I guess that makes things worse. I'm really sorry this happened. As I said - I'll do my best to make it more correct.

Some thoughts:

Regulators are really hard. They have an impossible job: regulating entire industries that are growing faster than their mandates allow. As a result, they often end up being less than ideally regulated.  

Even so, there are a few regulators whose knowledge and work impresses me, such as CFTC, SCB, and VARA to name a few. But most regulators are at a loss.

This means that interaction with regulation can be really frustrating: "a lot" of work, much of it casual, with relatively little client protection few. You all deserve the framework that allows regulators to protect customers while allowing freedom.  

Some of what I said (last night) was flippant or overly strong, but I was venting and not going public. But I guess at this point what I've written will be leaked anyway.

In the future, I will not care about stupid, no (substantial) information.

What matters is what you do, actually doing good things or doing bad things, not just talking about them.

Anyway, none of that matters now.

The important thing is to do my best.

And serve FTX's customers to the best of my ability.

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