Sam Bankman-Fried Says FTX Is Overly Leveraged More Than He Realized

1 mins mins

Former FTX CEO Sam Bankman-Fried continues to talk about his old exchange in a recent series of tweets.

Sam Bankman-Fried Says FTX Is Overly Leveraged More Than He Realized 2

Sam Bankman-Fried claimed that “too much leverage” and a run on the bank’s scenario were to blame for FTX’s demise in the most recent updates.

15) A few weeks ago, FTX was handling ~$10b/day of volume and billions of transfers.

But there was too much leverage–more than I realized. A run on the bank and market crash exhausted liquidity.

So what can I try to do? Raise liquidity, make customers whole, and restart.
— SBF (@SBF_FTX) November 16, 2022

He also commented that his fundraising attempt would probably fail, and all he had to do was try.

16) Maybe I'll fail. Maybe I won't get anything more for customers than what's already there.

I've certainly failed before. You all know that now, all too well.

But all I can do is to try. I've failed enough for the month.

And part of me thinks I might get somewhere.
— SBF (@SBF_FTX) November 16, 2022

The exchange that collapsed last week has been locked down in many parts of the world, its subsidiaries are having a hard time with the authorities. Sam Bankman-Fried is also being targeted by lawmakers in the US.

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