{"id":71230,"date":"2023-10-11T00:32:58","date_gmt":"2023-10-11T04:32:58","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/sam-bankman-fried-wrote-a-draft-twitter-thread-for-alameda-closure-two-months-before-ftx-collapse\/"},"modified":"2023-10-11T00:33:00","modified_gmt":"2023-10-11T04:33:00","slug":"sam-bankman-fried-wrote-a-draft-twitter-thread-for-alameda-closure-two-months-before-ftx-collapse","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=71230","title":{"rendered":"Sam Bankman-Fried Wrote a Draft Twitter Thread For Alameda Closure Two Months Before FTX Collapse"},"content":{"rendered":"
\n

Former\u00a0FTX<\/strong>\u00a0boss\u00a0Sam Bankman-Fried<\/strong>\u00a0had written a draft Twitter thread to announce the possible closure of his hedge fund\u00a0Alameda Research<\/strong>.\u00a0<\/p>\n

The thread, which was drafted in September 2022, reveals that Bankman-Fried considered announcing the closure of Alameda Research, the trading firm he co-founded, just two months before the collapse of FTX.<\/p>\n

During the trial, FTX co-founder\u00a0Gary Wang<\/strong>\u00a0testified that Bankman-Fried was anxious about an upcoming article that would expose the close ties between FTX and Alameda Research.\u00a0<\/p>\n

Bankman-Fried Praises Alameda in Draft Thread<\/h2>\n

In the thread, Bankman-Fried praised Alameda Research as a crucial player in the ecosystem, acting as “a buyer when no one else is ready to buy\u2013when markets are wild and volatile and prices are crashing and capital is scarce.”\u00a0<\/p>\n

He also commended Alameda’s achievements after his departure, emphasizing its role as a significant global source of liquidity and guidance for the industry.<\/p>\n

However, Bankman-Fried acknowledged Alameda’s biggest failure in the draft thread, which was losing track of millions of dollars’ worth of Ripple tokens due to accounting negligence in February 2018.\u00a0<\/p>\n

“In February 2018, we got lazy\u2013and our accounting was lazy\u2013and we lost most of what we’d made,” Bankman-Fried wrote.<\/p>\n

\n

“Employees were sad and angry and frustrated, and I had\u00a0no\u00a0<\/i>idea what to do about that.”<\/p>\n<\/blockquote>\n

Bankman-Fried used the thread as an opportunity to address the narrative propagated by competitors that Alameda and FTX had excessively close ties.\u00a0<\/p>\n

He dismissed the claims as distractions from their competitors’ own problems, emphasizing that they were not true.\u00a0<\/p>\n

Interestingly, Bankman-Fried’s plan to wind down Alameda Research was halted due to the firm’s significant debt of $14 billion owed to FTX.\u00a0<\/p>\n

Wang testified that when he informed Bankman-Fried about the inability to shut down Alameda, Bankman-Fried simply acknowledged the situation.<\/p>\n

The draft thread concludes with the hypothetical statement, “Alameda Research is dead. Long live FTX.”\u00a0<\/p>\n

However, Bankman-Fried never executed the closure of Alameda as planned.<\/p>\n

Wang Concludes Testimony on Day Six of Trial<\/h2>\n

On day six of the trial, Wang concluded his testimony and once again admitted to committing crimes with Bankman-Fried.<\/p>\n

Last week, Wang confessed that he and former FTX boss Sam Bankman-Fried committed wire fraud.\u00a0<\/p>\n

He\u00a0revealed\u00a0to the jury that he and Bankman-Fried engaged in financial crimes and deceitful practices that ultimately led to the collapse of the cryptocurrency trading platform.<\/p>\n

As the chief technical officer at FTX and a co-owner of Alameda Research, a cryptocurrency hedge fund founded by Wang and Bankman-Fried in 2017, Wang admitted to committing wire, securities, and commodities fraud.\u00a0<\/p>\n

He disclosed that the duo illegally withdrew a staggering $8 billion from FTX funds through Alameda Research. Wang further claimed that Bankman-Fried directed these illicit actions.<\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Former\u00a0FTX\u00a0boss\u00a0Sam Bankman-Fried\u00a0had written a draft Twitter thread to announce the possible closure of his hedge fund\u00a0Alameda Research.\u00a0 The thread, which was drafted in September 2022, reveals that Bankman-Fried considered announcing the closure of Alameda Research, the trading firm he co-founded, just two months before the collapse of FTX. During the trial, FTX co-founder\u00a0Gary Wang\u00a0testified that […]<\/p>\n","protected":false},"author":1,"featured_media":71231,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-71230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nSam Bankman-Fried Wrote a Draft Twitter Thread For Alameda Closure Two Months Before FTX Collapse | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Former\u00a0FTX\u00a0boss\u00a0Sam Bankman-Fried\u00a0had written a draft Twitter thread to announce the possible closure of his hedge fund\u00a0Alameda Research.\u00a0The thread,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=71230\" \/>\n<meta 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