- Crypto journalist reacts to SBF’s claims “FTX is solvent, as it always has been.”
- Fong claims SBF was well aware most people would call him a liar.
- SBF alleges that Sullivan & Cromwell made a large and fairly basic mistake.
Tiffany Fong, a crypto journalist, tweeted that she viewed some of FTX’s spreadsheet reminiscing about her meet-up with the CEO of FTX, Sam Bankman-Fried. Fong says, “he was very aware most people would tell him to ⦗expletive⦘ & call him a liar.”, had Bankman-Fried posted this fabricated spreadsheet then.
Fong had visited disgraced Bankman-Fried on December 27, 2022, while he was under house arrest, which was when she had seen the aforementioned balance sheet that Bankman-Fried had posted on his Twitter handle yesterday. In the tweet, he claims that “FTX US is solvent, as it always has been.”
As per the FTX US Balance Update 2023-01-17 Bankman-Fried alleges that S&C made a large and fairly basic mistake by putting out figures to drive his point home. He continues, “I had estimated roughly $350m more cash on hand than customer balances required (NAV). Using the extremely conservative estimates, their presentation implies a NAV of roughly +$111m, and using the more reasonable estimate you get a NAV of +$409m—pretty close to my number.”
Bankman-Fried further commented:
Sullivan & Cromwell (S&C) calculation had overcapitalized FTX US by roughly $350m
The FTX owner tries to supplement his arguments with a detailed balance sheet and accepts that some of the released information about FTX US by Sullivan & Cromwell (S&C) is misleading. Yet, his attempts to prove his points are in vain as he fails to convince the twitterati of the crypto community. This is clearly reflected in the sentiments of their responses to Fong’s tweet.
As per the article, his financial reports were leaked and showed a black hole of $900 million. It was shared with prospective investors before bankruptcy and gave a detailed overview of the financial hole in the FTX crypto empire. It even suggested that customers of FTX International may face steep losses on cash and crypto assets they held on the exchange.
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