Sam Bankman-Fried, founder of FTX, wrote to staff Tuesday, November 22. He described a $51billion crash in the company’s collateral, which dropped to $9billion from $60billion. SBF wrote in a letter to staff that there had been a combination of selloffs in cryptocurrency, credit squeezes, and a bank “run”.
CoinGape’s first article was “FTX Reports $51 billion Crash In Collateral”, Sequoia Apologises to Investors appeared first on CoinGape.

  

Sam Bankman-Fried, founder of FTX, wrote to his staff Tuesday 22 November detailing a $51 Billion crash in the company’s collateral. This has fallen to $9 billion from $60 Billions.
Bloomberg obtained SBF’s letter. He stated that the collateral was only $9 billion before the company filed for Chapter 11 bankruptcy.
By then, the estimated liabilities had reached $8 billion. The collateral fell to $30 billion due to the FTX’s crypto assets. Sam Bankman-Fried, chief of FTX, wrote this message to employees:
“I didn’t intend for this to happen. I would give anything just to be able do it over again. I didn’t realize the full extent and risk of the margin position nor the severity of a hyper-correlated crash.
The bankruptcy proceedings have shown some of the chaotic organizational practices at FTX that are rooted in deep-rooted problems. The bankruptcy proceedings reveal poor financial controls and documentation. It also shows that payment requests were approved using emojis in chatrooms.
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The company also used its funds for personal items and homes for employees and advisors. According to some reports, SBF’s parents purchased properties in the Bahamas worth a staggering $300,000,000 from senior staff of FTX. Rumours also suggest that Sam Bankman Fried was behind the $600million hack of FTX’s crypto exchange FTX.
Sequoia Apologizes To Investors For FTX
We know Sequoia Capital, a venture capital firm, was one of the largest investors in FTX. Nevertheless, top VC firm partners apologized to investors on Tuesday, November 22, as the crisis continues.

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Roelof Botha was the firm’s global head and said that he and his coworkers regret backing the company. Sequoia Capital had invested $214 million in FTX.com, FTX.us and both funds.

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