{"id":16608,"date":"2023-01-18T19:08:55","date_gmt":"2023-01-18T19:08:55","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sam-bankman-fried-disputes-ftx-us-shortfall-claims-critics-skeptical-of-excel-spreadsheet-defense-bitcoin-news\/"},"modified":"2023-01-18T19:08:55","modified_gmt":"2023-01-18T19:08:55","slug":"sam-bankman-fried-disputes-ftx-us-shortfall-claims-critics-skeptical-of-excel-spreadsheet-defense-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sam-bankman-fried-disputes-ftx-us-shortfall-claims-critics-skeptical-of-excel-spreadsheet-defense-bitcoin-news\/","title":{"rendered":"Sam Bankman-Fried Disputes FTX US ‘Shortfall’ Claims, Critics Skeptical of Excel Spreadsheet Defense \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Following an update from FTX debtors about the $5.5 billion discovered by administrators during an investigation, former FTX CEO Sam Bankman-Fried (SBF) took to Twitter to share a blog post from his Substack newsletter. SBF stated that the presentation published by litigation firm Sullivan & Cromwell is \u201cextremely misleading\u201d and that FTX US is solvent and \u201calways has been.\u201d<\/strong><\/p>\n

SBF Claims Misrepresentation by Litigation Firm, Twitter Critics Doubt Solvency<\/h2>\n

Sam Bankman-Fried (SBF) is providing additional information in response to the recent press release and 20-page presentation document issued by FTX debtors and current restructuring administrators. The press release reported that investigators found $5.5 billion in liquid assets. In response, SBF posted a new blog<\/a> on his Substack newsletter and stated<\/a> on Twitter, \u201cFTX US is solvent, as it always has been.\u201d The blog post echoes this statement and asserts discrepancies between Sullivan & Cromwell\u2019s (S&C) reporting and SBF\u2019s spreadsheet.<\/p>\n

\"Sam<\/p>\n

He disputes the assertion in the presentation that FTX US has a \u201cshortfall\u201d and maintains that FTX US is not insolvent. \u201cS&C claims that FTX US has a shortfall,\u201d SBF said in his latest blog post. \u201cThat claim is false. Based on S&C\u2019s own data provided in the same court presentation, FTX US had roughly $609 million of assets ($428 million in bank accounts, plus $181 million in tokens) backing roughly $199 million in customer balances. FTX US was solvent when it was turned over to S&C, and almost certainly remains solvent today.\u201d<\/p>\n

Despite SBF\u2019s claims, several people on social media mocked the FTX co-founder and specifically criticized his Excel spreadsheet. \u201cBro typed out a couple of numbers in 5 mins thinking it\u2019s gonna be his get out of jail free card,\u201d one person tweeted<\/a> in response to SBF\u2019s latest blog post. \u201cNice Excel sheet that a 5-year-old could make \u2014 LOL \u2014 Means nothing. Somebody shut this dude up forever,\u201d another person wrote<\/a>. SBF\u2019s claims were met with skepticism and his declarations did not appear to be convincing to many.<\/p>\n

\"Sam<\/p>\n

Missing Funds, Lack of Auto-Liquidation Issues, and \u2018Questionable FTX US Redemption System\u2019 Remain Unaddressed by Former FTX CEO<\/h2>\n

A number of people questioned<\/a> why SBF did not comment on the $10 billion in missing funds and once again, his blog post did not address the accusations made in the presentation. For example, following SBF\u2019s last blog post, Bitmex co-founder Arthur Hayes criticized<\/a> the FTX co-founder for not addressing the lack of auto-liquidation<\/a> associated with Alameda Research. The latest presentation from FTX debtors claims \u201cAlameda Research and a small group of individuals had the ability to remove assets from the exchange.\u201d Furthermore, the removal of funds was never recorded on the company\u2019s ledger, and the funds allegedly derived from FTX exchange customers.<\/p>\n

SBF did not address that specific subject at all. It is absent from his argument against Sullivan & Cromwell\u2019s presentation. People on Twitter brought this up to SBF on other Twitter threads about the subject, as SBF\u2019s tweets are set to \u201cprivate\u201d mode and cannot be commented on. \u201cThis does not explain the allegations of embezzlement to which your colleagues have pleaded guilty,\u201d one person on Twitter tweeted<\/a> in response to SBF\u2019s latest claims. One person told the media<\/a> that SBF\u2019s claims appear to be intentional \u201cmisdirection\u201d and \u201cpotentially for legal\/defense purposes.\u201d<\/p>\n

It is safe to say that Bankman-Fried\u2019s claims and recent blog posts are not being taken seriously, and his Excel spreadsheet method is not convincing the general public. Some people wondered if SBF was \u201cpresumably tweeting against the advice of legal counsel.\u201d The latest blog post was not much different from the last post SBF wrote, as they both fail to explain a number of issues raised<\/a> by Bankman-Fried\u2019s co-workers \u2014 former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang. Furthermore, evidence has emerged about how \u201ctraders may have used a questionable FTX US redemption system\u201d for Solana-bridged assets.<\/p>\n

\"Sam<\/p>\n

Conor Rogan, a director at Coinbase who frequently tweets about onchain activities, said this redemption scheme could complicate the bankruptcy process. \u201cFrom November 9th until withdrawals were halted a few days later, traders may have used a questionable FTX US redemption system to funnel [tens of millions] out of the exchange,\u201d Rogan said<\/a>. \u201cThis could complicate bankruptcy proceedings and further call into question FTX-FTXUS separation claims,\u201d he added. Rogan discussed<\/a> a synthetic Solana-based bitcoin (BTC<\/a>) token called \u201csollet (soBTC)<\/a>\u201d which broke its peg when FTX\u2019s troubles were engulfed in flames. Despite the financial issues, FTX US still processed sollet redemptions on a 1:1 basis.<\/p>\n

The redemptions still occurred while sollet was trading<\/a> for much lower than BTC<\/a>\u2019s spot price, and Rogan believes the \u201ctoxic redemptions\u201d or \u201cswapping unbacked ETH<\/a> and BTC<\/a>\u201d led to the potential loss of over $40 million. \u201cFTX US would presumably have 1,700 real BTC<\/a>, instead of 1,700 soBTC worth near-zero on the open market today,\u201d Rogan tweeted<\/a>. The onchain researcher noted<\/a>, however, that the evidence was his own \u201cspeculative findings based on research into FTX US\u2019s Solana address and discussions with members of the Solana community.\u201d Notably, following Rogan\u2019s Twitter thread, SBF decided to reply to the claims made.<\/p>\n

\u201cI\u2019m fairly confident that FTX US\u2019s excess cash on hand is much larger than the size of the wrapped asset issue to the extent there is one,\u201d SBF wrote in reply<\/a> to Rogan\u2019s Twitter statements.<\/p>\n

Once again, SBF\u2019s comment about the sollet (soBTC) issue was met with skepticism<\/a> and criticism<\/a> shortly after he published the tweet. \u201cYou just said they were solvent. Now you\u2019re \u2018fairly confident?’\u201d one person asked<\/a> the FTX co-founder. \u201cI\u2019m fairly confident you will spend a long time in federal prison,\u201d another individual tweeted<\/a>. Rogan\u2019s Twitter thread and SBF\u2019s response further highlight that people do not seem to be accepting the former FTX CEO\u2019s statements. \u201cNobody believes anything you say and they never will,\u201d one person replied<\/a> to SBF\u2019s sollet commentary on Twitter.<\/p>\n

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\nTags in this story
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$5.5 billion<\/a>, Accusations<\/a>, Alameda Research<\/a>, Arthur Hayes<\/a>, auto-liquidation<\/a>, Bankruptcy<\/a>, Conor Rogan<\/a>, Criticism<\/a>, debtors<\/a>, Excel spreadsheet<\/a>, former CEO<\/a>, ftx<\/a>, FTX US subsidiary<\/a>, FTX.US<\/a>, Investigation<\/a>, misleading<\/a>, missing funds<\/a>, Onchain<\/a>, presentation<\/a>, redemption scheme<\/a>, Sam Bankman-Fried<\/a>, sbf<\/a>, SBF Claims<\/a>, Social Media<\/a>, Solana-bridged assets<\/a>, solvent<\/a>, Substack newsletter<\/a>, Sullivan Cromwell<\/a>, US<\/a><\/div>\n<\/div>\n

What are your thoughts on Sam Bankman-Fried\u2019s claims of FTX US\u2019 solvency and the accusations of embezzlement and missing funds? Leave your comments below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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