Embattled FTX Sam Bankman-Fried delivered a profanity-laced public apology on Thursday as his cryptocurrency exchange teetered on the verge of collapse.
FTX’s future was in grave jeopardy after rival platform Binance decided to nix a non-binding deal to bail out the platform from a liquidity crisis. Bankman-Fried took responsibility for FTX’s dire situation in a lengthy Twitter thread.
“I’m sorry. That’s the biggest thing. I f–ked up, and should have done better,” Bankman-Fried tweeted.
The crypto evangelist began by explaining his lack of public communication about FTX’s dealings with Binance – noting his “hands were tied” while negotiations were underway. Bankman-Fried asserted that problems were contained to FTX’s international platforms and that its US users were “fine.”
The FTX founder admitted that he was “substantially off on my sense of users’ margin” prior to the current crisis. He also acknowledged misjudging FTX’s liquidity, which proved woefully inadequate to address a record $5 billion in withdrawals last Sunday as users scrambled to get their money out of the crumbling exchange.
“Anyway: right now, my #1 priority–by far–is doing right by users. And I’m going to do everything I can to do that. To take responsibility, and do what I can,” Bankman-Fried said.
“So, right now, we’re spending the week doing everything we can to raise liquidity. I can’t make any promises about that. But I’m going to try. And give anything I have to if that will make it work,” he added.
Bankman-Fried said FTX would redirect “every penny” of the cash it raises to burned users – with investors and employees covered once customers’ needs are met.
FTX faces a shortfall of up to $8 billion, according to multiple reports. Binance was reportedly taken aback by the extent of the exchange’s financial troubles, which contributed to its decision to back out of an agreement to rescue Bankman-Fried’s firm.
“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” Binance said in a statement.
Bankman-Fried appeared to take a shot at Binance CEO Changpeng Zhao, his longtime rival, for scrapping the deal.
“At some point I might have more to say about a particular sparring partner, so to speak. But you know, glass houses. So for now, all I’ll say is: well played; you won,” Bankman-Fried said.
Bankman-Fried told investors on Wednesday that FTX needed to raise at least $4 billion to remain solvent and avoid bankruptcy, Bloomberg reported.
In the Twitter thread, Bankman-Fried said his cryptocurrency trading house, Alameda Research, would “wind down” operations. Alameda was heavily invested in FTT, a token issued by FTX.
Revelations of Alameda’s financial ties to FTX precipitated the exchange’s collapse. Binance liquidated its FTT holdings after the details emerged.
FTX’s meltdown has crushed Bankman-Fried’s net worth – which plummeted from nearly $16 billion to approximately $1 billion in a matter of hours.