Sam Bankman-Fried, the former chief executive of collapsed cryptocurrency exchange FTX, said he did not steal money and blamed the crypto market crash for his platform going bankrupt in an unusual online blog post on Thursday.
“I didn’t steal funds, and I certainly didn’t stash billions away. Nearly all of my assets were and still are utilisable to backstop FTX customers,” Mr Bankman-Fried said in the blog post on Substack.
“I’ve been, regrettably, slow to respond to public misperceptions and material misstatements. It took me some time to piece together what I could — I don’t have access to much of the relevant data, much of which is for a company [Alameda] I wasn’t running at the time.”
Mr Bankman-Fried, who was arrested in the Bahamas last month, wrote out his version of the events that led to his company’s collapse.
FTX International and Alameda were both independently profitable businesses in 2021, each making billions. Then Alameda lost about 80 per cent of its assets’ value over the course of 2022 due to a series of market crashes. FTX was also affected by Alameda’s decline.
Mr Bankman-Fried is accused of stealing billions of dollars in FTX customer deposits to support his Alameda Research hedge fund, to buy real estate and to make political contributions in what prosecutors have called a fraud of epic proportions.
The Massachusetts Institute of Technology graduate rode a boom in the value of Bitcoin and other digital assets to build a net worth of an estimated $26 billion. He eventually became an influential political donor in the US.
But FTX collapsed in early November after a wave of withdrawals and consequently declared bankruptcy on November 11, wiping out Mr Bankman-Fried's fortune. He later said he had $100,000 in his bank account.
Mr Bankman-Fried was extradited last month from the Bahamas, where he had been living and where the exchange was based.
Since his release on a $250 million bond on December 22, Mr Bankman-Fried has been subject to electronic monitoring and is required to live with his parents, both professors at Stanford Law School in California.
Earlier this month, he pleaded not guilty to criminal charges.
In the blog post, Mr Bankman-Fried said Alameda’s balance sheet had grown to nearly $100 billion of net asset value, $8 billion of net borrowing and $7 billion of liquidity on hand in 2021. But Alameda failed to sufficiently hedge against the “risk of an extreme market crash”.
The “hundred billion of assets had only a few billion dollars of hedges”, he said.
“Alameda failed to sufficiently hedge its market exposure. Over the course of 2022, a series of large broad market crashes came — in stocks and in crypto — leading to a [nearly] 80 per cent decrease in the market value of its assets.”
'Fateful Tweet'
On November 6, Changpeng Zhao — chief executive of Binance, the world's largest crypto exchange — tweeted about selling a huge part of FTX’s native token FTT. That worsened the situation and FTX quickly failed.
“Then came CZ’s [Changpeng Zhao's] fateful tweet, following an extremely effective months-long PR campaign against FTX — and the crash,” Mr Bankman-Fried wrote in the blog.
“Alameda became illiquid, FTX International did as well, because Alameda had a margin position open on FTX; and the run on the bank turned that illiquidity into insolvency.”
Mr Zhao has previously said that he did not realise the tweet “would cause so much change”, according to a Bloomberg report.
In his post, Mr Bankman-Fried stressed that “very substantial recovery remains potentially available”.
“FTX US remains fully solvent and should be able to return all customers’ funds. FTX International has many billions of dollars of assets, and I am dedicating nearly all of my personal assets to customers,” he said.
Last month, two top associates of Mr Bankman-Fried pleaded guilty to criminal charges and are co-operating with US prosecutors leading the investigation into FTX’s collapse.
The FTX founder's trial is scheduled to start on October 2.
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The specs: 2017 Porsche 718 Cayman
Price, base / as tested Dh222,500 / Dh296,870
Engine 2.0L, flat four-cylinder
Transmission Seven-speed PDK
Power 300hp @ 6,500rpm
Torque 380hp @ 1,950rpm
Fuel economy, combined 6.9L / 100km
The Orwell Prize for Political Writing
Twelve books were longlisted for The Orwell Prize for Political Writing. The non-fiction works cover various themes from education, gender bias, and the environment to surveillance and political power. Some of the books that made it to the non-fiction longlist include:
- Appeasing Hitler: Chamberlain, Churchill and the Road to War by Tim Bouverie
- Some Kids I Taught and What They Taught Me by Kate Clanchy
- Invisible Women: Exposing Data Bias in a World Designed for Men by Caroline Criado Perez
- Follow Me, Akhi: The Online World of British Muslims by Hussein Kesvani
- Guest House for Young Widows: Among the Women of ISIS by Azadeh Moaveni
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
'Doctor Strange in the Multiverse Of Madness'
Director: Sam Raimi
Cast: Benedict Cumberbatch, Elizabeth Olsen, Chiwetel Ejiofor, Benedict Wong, Xochitl Gomez, Michael Stuhlbarg and Rachel McAdams
Rating: 3/5
New process leads to panic among jobseekers
As a UAE-based travel agent who processes tourist visas from the Philippines, Jennifer Pacia Gado is fielding a lot of calls from concerned travellers just now. And they are all asking the same question.
“My clients are mostly Filipinos, and they [all want to know] about good conduct certificates,” says the 34-year-old Filipina, who has lived in the UAE for five years.
Ms Gado contacted the Philippines Embassy to get more information on the certificate so she can share it with her clients. She says many are worried about the process and associated costs – which could be as high as Dh500 to obtain and attest a good conduct certificate from the Philippines for jobseekers already living in the UAE.
“They are worried about this because when they arrive here without the NBI [National Bureau of Investigation] clearance, it is a hassle because it takes time,” she says.
“They need to go first to the embassy to apply for the application of the NBI clearance. After that they have go to the police station [in the UAE] for the fingerprints. And then they will apply for the special power of attorney so that someone can finish the process in the Philippines. So it is a long process and more expensive if you are doing it from here.”
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Essentials
The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes.
Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes.
In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes.
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
