‘I did now not desire funds,’ Sam Bankman-Fried says in fresh post-arrest weblog post

‘I didn’t bag funds,’ Sam Bankman-Fried says in extraordinary submit-arrest weblog submit

© Reuters. FILE PHOTO: Former FTX Chief Govt Sam Bankman-Fried, who faces fraud prices over the collapse of the bankrupt cryptocurrency alternate, departs from his court docket listening to at Manhattan federal court docket in Contemporary York City, U.S. January 3, 2023. REUTERS/David De

By Luc Cohen

NEW YORK (Reuters) -Sam Bankman-Fried acknowledged he didn’t bag cash and blamed the collapse of his now-bankrupt FTX alternate on a astronomical shatter in cryptocurrency markets, in a highly extraordinary weblog submit on Thursday, a month after his arrest on U.S. fraud prices.

Federal prosecutors in Manhattan in December acknowledged Bankman-Fried stole billions of greenbacks from FTX customers to pay debts for his crypto-focused hedge fund, Alameda Research, steal lavish accurate estate, and donate to U.S. political campaigns.

He has pleaded no longer responsible. The Substack weblog submit — a rare public statement by a U.S. felony defendant — amounts to a preview of the defense case Bankman-Fried may perhaps well well unbiased display when his trial begins on Oct. 2.

“I didn’t bag funds, and I if truth be told didn’t stash billions away,” Bankman-Fried wrote.

Defense legal professionals on the total expose purchasers to have restful before trial due to prosecutors may perhaps well well unbiased exercise their feedback against them in court docket.

A spokesman for Bankman-Fried declined to comment. A spokesman for the U.S. Attorney’s office in Manhattan declined to comment.

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In the submit, Bankman-Fried didn’t at once take care of a few the different prices introduced against him by federal prosecutors in Manhattan final month, namely that he misled investors and lenders about the monetary prerequisites of FTX and Alameda. He wrote that he had “worthy extra to claim.”

The 30-one year-ragged onetime billionaire wrote that Alameda failed to hedge against an “extreme” shatter in the crypto markets, which in the raze got here to pass final one year.

“As Alameda turned illiquid, FTX World did as neatly, due to Alameda had a margin situation delivery on FTX,” Bankman-Fried wrote.

Final month, two of his closest associates pleaded responsible to defrauding the trading platform’s customers and agreed to cooperate with prosecutors’ investigation.

Caroline Ellison, Alameda’s old chief government, acknowledged in her plea listening to that Bankman-Fried and other FTX executives received billions of greenbacks in secret loans from Alameda.

Bankman-Fried was launched on a $250 million bond in December and keep below dwelling arrest at his of us’ Palo Alto, California dwelling, which was pledged as collateral for his return to court docket.

$5 BILLION RECOVERED

In the submit, Bankman-Fried also acknowledged FTX’s U.S. fly is “fully solvent” and that its global unit has many billions of greenbacks in resources.

“If it had been to reboot I imagine there is a accurate chance that customers may perhaps well well presumably be made considerably entire,” he wrote.

The feedback got here after a lawyer for FTX on Wednesday suggested a federal financial slay court docket in Delaware that the alternate had positioned extra than $5 billion in liquid resources, and that the company plans to sell nonstrategic investments that had a guide worth of $4.6 billion.

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That does no longer consist of resources seized by the Securities Commission of the Bahamas, where FTX was primarily based fully and where Bankman-Fried lived before he was extradited to the US. Bahamian authorities instruct they have gotten seized $3.5 billion, nonetheless FTX says those funds are worth as small as $170 million.

On Wednesday night, Bankman-Fried replied on Twitter to a particular person named @wassielawyer who acknowledged a sale of the FTX alternate was viable. “yup my sense is that’s and repeatedly has been the handiest restoration self-discipline for customers,” wrote Bankman-Fried.

FTX declared financial slay on Nov. 11, the identical day Bankman-Fried stepped down as its chief government.

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