SBF's Latest Statement: Full Liquidity Support Next Week, Users Will Receive Rebates and Collateral for Every Penny

SBF continues to apologize in the latest statement, mentioning the trigger of the liquidity crisis, clarifying that Alameda did not suffer the huge losses circulating on Twitter, and once again telling a specific competitor "you win," seemingly referring to Binance.

SBF's Latest Statement in Full:

Sorry, this is crucial. I messed up, should have done better, and should have communicated more with everyone.

But clearly, during the potential acquisition by Binance, I was specifically asked not to make too many public statements. However, it's still my responsibility, and if things were handled correctly from the start, this transaction wouldn't have been necessary.

Here is an update on the situation, all about FTX, a non-U.S. exchange, FTX.US users are completely fine! The numbers mentioned below are approximate values.

The current assets and collateral value of FTX exceed user deposits. Prices fluctuate, but this is different from the liquidity that can be issued, as seen in the withdrawal situation.

I've been continuously updating the details of the full story, but in a macro view, I messed up twice. The first time was a bank-related account that wasn't fully tagged, and I misjudged the feeling of user margin; I thought it was much lower.

I previously thought:

Leverage was: 0x

USD liquidity was ready at all times: 24x daily withdrawal amount

It actually is: 1.7x

Liquidity is 0.8x Sunday withdrawals

Of course, a withdrawal rush occurred, and we encountered $5 billion in withdrawals on Sunday. The most ever.

This is my second mess-up. I did terribly from every angle.

The third mess-up, inadequate communication. I should have made more public statements; I'm sorry, I was busy with some things and didn't provide the latest updates to all of you, which is why things have come to this point, it's terrible, it's all my fault, I'm sorry.

Anyway, my top priority now is to do the right thing for users. I will do everything I can to do this, take responsibility, and do my best.

Therefore, FTX will strive to increase liquidity to the fullest in the coming week.

I can't make any promises on this, but I'll try, and if it can make a difference, I will pay any price to execute it.

We are also negotiating with several market participants, including letters of intent, lists of terms, etc., to see how things turn out.

Every penny, existing collateral will be directly assigned to users until we fulfill our obligations to users.

After this matter, whether it's past or future investors, employees striving for their correct professional careers, none of them are responsible for these matters.

Because fundamentally, I am the CEO, which means I must ensure things run smoothly, I am the one who started everything. Obviously, I failed, I'm sorry.

What does this mean? I'm not sure, it depends on what happens next week. But there are some things I can say that I understand.

Firstly, Alameda Research is somehow ending transactions. They didn't do any of the weird things circulating on Twitter; they didn't do anything out of line, and they won't be trading on FTX in the future.

Secondly, if FTX continues to operate, the top priority will be to provide complete transparency, as much on-chain transparency as possible, so that users know exactly what's going on.

All stakeholders will also seriously review FTX governance in the future, and if they don't want me to intervene, I can't.

All stakeholders, including investors, regulators, users, will play a crucial role in operations.

But none of this is the most important right now; the most important thing now is to do the right thing for users.

Other news:

All the above is about FTX, FTX US is a U.S. exchange that accepts U.S. users, unaffected financially by this drama. It has 100% liquidity, and all users can withdraw completely.

For the days ahead:

One day in the future, I might have a lot to say to a specific opponent, but right now, I really don't have the qualifications to criticize others, so for now, I can only say: well done, you've won.

None of the above is meant to provide any advice; the language I used above didn't pay attention to details, nor was it any technical or legal advice; although I tried to maintain transparency, I might not have described some things well, I'm not a very good developer, and there may be mistakes in the description.

Finally, I sincerely apologize, and we will continue to provide updates as new developments unfold.