Sam Bankman-Fried, CEO of FTX, has come out to allay fears about the state of the crypto exchange’s finances.
Bankman-Fried said the platform has excess cash and clients’ funds are safe while also calling on Binance CEO to collaborate with him to improve the ecosystem.
- In a recent tweet thread on Monday (November 7, 2022), Sam Bankman-Fried, also known as SBF, said the crypto exchange which he spearheads has sufficient funds to cover clients’ holdings.
- The CEO also doused claims of insolvency, arguing that the exchange is capable of processing customer withdrawals. “FTX is fine. Assets are fine,” stated SBF, adding:
“It’s heavily regulated, even when that slows us down. We have GAAP audits, with > $1b excess cash. We have a long history of safeguarding client assets, and that remains true today.”
- Bankman-Fried, in his tweet thread, further asked to work with Binance CEO Changpeng Zhao to grow the industry. As previously reported by CryptoPotato, Zhao said Binance would liquidate any remaining FTT, FTX’s native token, following recent revelations.
- The Binance chief noted during the weekend:
“Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards.”
- Earlier media reports claimed that quant trading firm Alameda Research, also owned by SBF, was reportedly overexposed to FTT. However, Alameda CEO Caroline Ellison debunked the revelations, stating that they painted an incomplete picture of the company’s financials.