Sam Bankman-Fried publishes a Substack post offering his account of how FTX collapsed, sticking to his claims of innocence, even as ex-executives plead guilty

Disgraced FTX founder Sam Bankman-Fried on Thursday published his account of how the crypto company collapsed.

Axios 2023-01-12 Lucinda Shen

Context & Ripple Effects

The Substack post extends Bankman-Fried's public defense after his DealBook appearance and a draft House testimony that also sought to assign responsibility for FTX's failure. It matters because the defense is now set against guilty pleas by former executives, rather than solely against accounts of the collapse.

First-order effects

Bankman-Fried gains a direct channel to frame FTX's failure around his innocence, while former FTX executives' guilty pleas create an immediately conflicting account of responsibility.
FTX's collapse becomes a contest over credibility as well as a financial failure, with the founder's narrative diverging from admissions by people who ran the company alongside him.

Second-order effects

Crypto-policy advocates and companies inherit a harder credibility problem: Bankman-Fried's earlier role as a prominent Washington-facing crypto figure is now inseparable from FTX's political rise and fall.
Public defenses by former exchange leaders raise the reputational cost for crypto businesses that rely on executive trust and regulatory engagement, reinforcing the sector's legitimacy gap.

Third-order effects

If high-profile failures continue to produce conflicting insider narratives, crypto legitimacy will depend less on founder-led assurances and more on governance and accountability that can be independently tested.

The trend: FTX is part of a broader crypto legitimacy gap in which founder influence and political access are being displaced by demands for verifiable accountability.

Discussion

@sbf_ftx @sbf_ftx on x
https://sambf.substack.com/...
@ceostroff Caitlin Ostroff on x
.@SBF_FTX has taken to Substack for his new tell-all. Free with the option of paying him. 🤔 https://www.wsj.com/... https://twitter.com/...
@sbf_ftx @sbf_ftx on x
@wassielawyer yup my sense is that is and always has been the best recovery scenario for customers. I think that them being made substantially whole is a real possibility; I think we were possibly a few weeks away from getting there in November. (US is solvent, should make everyo…
@kadhim @kadhim on x
SBF says he's willing to ‘contribute’ his Robinhood shares to FTX customers. He bought the shares with money borrowed from Alameda, the former CEO of which pleaded guilty to stealing much of its money from FTX customers. https://twitter.com/... https://twitter.com/...
@gergelyorosz Gergely Orosz on x
I stay away from crypto, but SBF digging his own grave deeper is hard to gloss by. While prosecuted, conventional wisdom is to discuss with your lawyers, and don't offer more evidence for the prosecutor. SBF is handling these on a golden plate. https://sambf.substack.com/...
@gergelyorosz Gergely Orosz on x
While Substack has been growing very much, and “starting a Substack” these days is the “starting a Medium” in 2015 and “starting a blog” in 2010, I still did not expect SBF - the man sued for what looks like a ~$8B crypto fraud - to start a Substack. But he has. https://twitter.c…
@sbf_ftx @sbf_ftx on x
@QuintenFrancois wait FTX definitely wasn't spending $180m/year on Amazon delivery costs I think your units are probably off somewhere there?
@caspiancey Cas Piancey on x
Remember when SBF was relentlessly doing interviews and repeating the same shitty excuses over and over and over again? Well now he has a substack so you can read those exact same excuses and pay for them. No lawyer will work with this guy, bet his current lawyer walks.
@tiffanyfong_ Tiffany Fong on x
On his newly-launched blog, SBF maintains he did not steal customer funds & that FTX US is 100% solvent. Here's the link if you're curious.🤷🏻‍ ♀️ https://sambf.substack.com/
@compound248 @compound248 on x
That attack by CZ the Meanie made Alameda insolvent. Naughty CZ. https://twitter.com/...
@compound248 @compound248 on x
Holy shit - @SBF_FTX just launched a Substack! Lol Issue 1 highlights below. 👇 BTW, should I join the Founding Tier for only $150/year? I'm stealing from SBF at that price. Downside: can't pay in crypto... missed opportunity to create an $FTT use case. https://twitter.com/... htt…
@compound248 @compound248 on x
SBF claims Alameda (Sam's personal account) ended 2021 with nearly ONE HUNDRED BILLION OF NET ASSET VALUE. 👀 Holy. Shit. I had to read three times. $100,000,000,000 is the claim. “Marked to market...by my model.” In case anyone wonders, Compound248 is worth $100 trillion. https:/…
@compound248 @compound248 on x
FTX and Almeida were both “legitimately” profitable in 2021 (better than illegitimately profitable!). In the billions each. But Almeida lost at least 80%!! In 2022. Whoops! https://twitter.com/...
@compound248 @compound248 on x
Claim: FTX US was solvent and had $350mm in cash in excess of client assets. https://twitter.com/...
@billackman Bill Ackman on x
For those following ⁦@SBF_FTX⁩ and worth a careful read. https://sambf.substack.com/...
@compound248 @compound248 on x
Then @cz_binance attacked us. It wasn't a crypto crash - it was a targeted attack on me and FTX. Waa waa 😭 https://twitter.com/...
@kantrowitz Alex Kantrowitz on x
SBF's Parents: We're putting our house and reputation on the line for your defense SBF: I'm starting a Substack
@wublockchain Wu Blockchain on x
He stated that FTX US remains fully solvent and that FTX International has billions of dollars in assets. In 2022, Alameda failed to fully hedge its market risks, causing its asset market value to drop by about 80%.
@wublockchain Wu Blockchain on x
SBF issued a long article to continue to criticize that Binance CEO CZ contributed to the collapse of Alameda's insolvency, but he did not give any explanation for the misappropriation of customer assets. https://t.co/LlJ1Vrifjd
@seyitaylor @seyitaylor on x
I've said over and again that I was not convinced Bankman-Fried would end up in jail until he opened his mouth. https://sambf.substack.com/...
@christorreslugo Christopher Torres-Lugo on x
Has anyone called a wellness check on SBF's lawyers? https://sambf.substack.com/...
@bee_are_ @bee_are_ on x
[legal team shrieking intensifies] https://sambf.substack.com/...
@kofinas Demetri Kofinas on x
Sam's constant need to communicate and be liked has ironically destroyed any chance he ever had of getting a light sentence. Spending the rest of his life without a phone is probably going to be the worst punishment imaginable for someone like this. https://sambf.substack.com/...…
@kantrowitz Alex Kantrowitz on x
Can't wait for SBF to write the next installment in the Twitter Files https://twitter.com/...
@basedkarbon @basedkarbon on x
@SBF_FTX ... Too late. I already pledged my support 🫡
@silvermanjacob Jacob Silverman on x
Never seen anything like this. Not quite “If I Did It” territory but it's bold. https://sambf.substack.com/...
@cameronmoulene @cameronmoulene on x
I read this Bs until this “JUST AN ESTIMATE” spreadsheet 🫠 1) wtf is a “less liquid asset” 2) operating at a net liquid -8b in the bull...🤦‍♂️ https://twitter.com/... https://twitter.com/...
@functi0nzer0 Laurence on x
Releasing this 25 minutes before the CPI is a hilariously cruel move https://twitter.com/...
@0xquit @0xquit on x
That's the issue here. BlockFi, Genesis, Celcius et al were custodial lending services. We expect them to lend funds, and, as a result accept the risk of insolvency. An exchange should match orders, and back customer funds. That's all.
@0xquit @0xquit on x
In a 2,000 word essay just published, SBF states that “FTX joined Voyager, Celsius, BlockFi, Genesis, Gemini, and others that experienced collateral damage from the liquidity crunch of their borrowers.” How hard is it to admit that your exchange shouldn't have borrowers?
@sbf_ftx @sbf_ftx on x
@ceostroff @Vlajournaliste heh whoops that was unintentional, good catch—think there shouldn't be a paying option anymore...
@emptywheel @emptywheel on x
On the one hand, if SBF were a poor Black man accused of robbing some bodegas, he'd likely be in jail pre-trial. On the other hand, prosecutors are probably licking their chops that SBF has decided to SubStack his way through pre-trial release.
@josephpolitano @josephpolitano on x
NOT NOW CRIME GUY WE HAVE CPI IN 7 MINUTES https://twitter.com/...
@dlauer Dave Lauer on x
See this is just so disingenuous. Credit Suisse is engaged in fractional reserve banking - an exchange should be fully collateralized. He conveniently neglects to mention Alameda not being included in margin calcs & the accounting tricks to keep or move customer funds to Alameda.…
@coloradotravis @coloradotravis on x
Christ, SBF has a substack. Guess the whole substack wave is over now. https://twitter.com/...
@udiwertheimer Udi Wertheimer on x
Amazing to me that @SBF_FTX is still comparing FTX to lenders like BlockFi, Voyager, and Celsius, who lent out customers funds with poor risk management. FTX shouldn't have been lending out customer funds AT ALL, regardless of risk management. Yes, funds WERE stolen Sam. https://…
@iamdcinvestor @iamdcinvestor on x
it's hilarious how much @SBF_FTX is trying to manage his own public perception (while potentially incriminating himself further) given the charges against him judges and juries won't care bro, and no one else believes you extreme narcissist to the n'th degree
@alexandrascaggs Alexandra Scaggs on x
if i were arrested and charged with multiple kinds of fraud i would simply stop writing and read more books
@kylascan Kyla Scanlon on x
sometimes i wonder if we are just dreaming everything because often things do pass the bounds of what might be considered reality https://twitter.com/...
@iamdcinvestor @iamdcinvestor on x
his own employees and best friends actually taking deals to flip on him to the Feds, and he's out here writing blog posts like it was still all some big misunderstanding lmao
@metalawman @metalawman on x
Lengthy statement from SBF just released. He says Sullivan & Cromwell was one of FTX Trading's 2 primary law firms, and the primary law firm for https://ftx.us/. If any of this is accurate, it is difficult to imagine a scenario where S&C continues as Debtors' counsel. https://twi…
@ivanthek @ivanthek on x
Is SBF fine-tuning his insanity defense?
@zerohedge @zerohedge on x
SBF: “I didn't steal funds, and I certainly didn't stash billions away” That's odd, because all of your former coworkers now say you did
@joepwilliams31 Joseph on x
What is SBF eating?!? Subscribe to find outS https://twitter.com/...
@ryansadams Ryan Sξan Adams on x
Sam's new substack post is gross. Blaming everyone but himself. I wish we could leave this guy in 2022.
@dlauer Dave Lauer on x
So SBF has written a “pre-mortem” to try to explain away the theft of FTX customer assets. It's worth a read, but of course keep in mind even if true (which is highly unlikely), theft is theft - it doesn't matter how you explain it away or justify it. https://sambf.substack.com/.…
@umbrella_uni @umbrella_uni on x
“Dedicating all my personal assets to customers” mmmm ummm weren't you fighting for your Robinhood shares just last week? https://twitter.com/...
@raamana_ Pradeep Raamana on x
@Techmeme @ShenLucinda this seems like a well-calculated stance from the very beginning! perhaps with counsel from his lawyer parents ?? @DavidSacks @chamath
@pierre_crypt0 Pierre on x
« No money was stolen » they were used and lost, that's stealing mate https://twitter.com/...
@davidgura David Gura on x
“I didn't steal funds, and I certainly didn't stash billions away.” In a lengthy post on a new Substack, Sam Bankman-Fried gives his account of what he claims happened to FTX: https://sambf.substack.com/...
@defiyst @defiyst on x
Imagine trying to hedge idiosyncratic crypto risk via a QQQ short. Thought you held the most sought after private equity on the market at the time, fella? https://twitter.com/...
@nope_its_lily Lily on x
this and Alameda's hedging via QQQ may be in part a reason for the broader Bitcoin-Nasdaq correlation. https://twitter.com/...
@defiyst @defiyst on x
SBF making up arbitrary numbers for balance sheet positioning, casually rounding off billions in customer deposits despite recognizing he has no access to the accurate figures. Generally just copy pasting the rhetoric from prior statements. Not worth reading. Just blanket lies. h…
@smtuffy Sean Tuffy on x
He's suing to get control of the robinhood shares to pay for his legal defense. This is matter of public record. What a stupid lie https://t.co/xo8q5Qs0FL
@anthony Anthony DeRosa on x
Just a very normal Substack from a guy out on $250 million bail facing multiple counts of fraud involving several billion dollars. Not too long ago you still had people stuck in jail for possession of marijuana. This guy is home blogging his crimes. https://sambf.substack.com/...
@veh0rny @veh0rny on x
Biggest piece of shit ever https://sambf.substack.com/...
@mattgoldstein26 Matthew Goldstein on x
“Unfortunately, the DOJ moved to arrest me the night before, preempting my testimony with an entirely different news cycle.” from SBF substack just out https://sambf.substack.com/...
@smtuffy Sean Tuffy on x
That's a fun euphemism for the government seized your stolen money https://t.co/M9PbxhYzBW https://t.co/1T3EQ6UhC0
@macrocrg @macrocrg on x
SBF is still acting like none of this is his fault / that he's free of responsibility What a fkin psychopath https://twitter.com/...
@pledditor @pledditor on x
Oh boy. SBF dropped a substack post full of nonsense. “I didn't steal funds”....ummm yeah you did. And LMAO at him wanting FTX creditors to fund his criminal trial defense team...a trial where he is accused of DEFRAUDING those same FTX creditors... https://twitter.com/... https:/…
@jamespmcleod James McLeod on x
It is increasingly clear that SBF was and is, first and foremost, a narcissist who really cannot stop talking. He talked to sell a multi-billion dollar fraud, and is now launching a Substack while he is on trial, a step that no lawyer I've ever met would endorse. https://twitter.…
@kirbylarp @kirbylarp on x
Stopped reading when he blamed Binance Trash https://twitter.com/...
@kadhim @kadhim on x
SBF's lawyers: https://twitter.com/...
@degen_julian DegenJulian on x
the mfer called it a post mortem lmao. its like if ted bundy did forersnic analysis on his own murders https://twitter.com/...
@smtuffy Sean Tuffy on x
This is absolutely delusional and, i swear to god, if the professional SBF apologists take him at his word - I am going to become the joker https://sambf.substack.com/...
@stoicsavage @stoicsavage on x
“In November 2022, an extreme, quick, targeted crash precipitated by the CEO of Binance made Alameda insolvent.” this mffffff https://sambf.substack.com/...
@ivanthek @ivanthek on x
Defendant under house arrest has a substack. https://sambf.substack.com/...
@hactar0 @hactar0 on x
🤔 https://twitter.com/...
@degeneratenews @degeneratenews on x
BREAKING: @SBF_FTX RELEASES HIS DIAGNOSIS OF FTX DEBACLE https://twitter.com/...
@xyzqcrypto @xyzqcrypto on x
Lmao fucking rat still blaming it on others @cz_binance https://twitter.com/... https://twitter.com/...
@xamanap @xamanap on x
Lets be clear, cz is not to blame, sbf is, for permitting ftx to fall into such a fragile position where comp could exit their position and trigger implosion. “c) In November 2022, an extreme, quick, targeted crash precipitated by the CEO of Binance made Alameda insolvent.” https…
@unusual_whales @unusual_whales on x
SBF has said: I didn't steal funds, and I certainly didn't stash billions away. Nearly all of my assets were and still are utilizable to backstop FTX customers.
@tiffanyfong_ Tiffany Fong on x
Spoke with SBF today. Today, he's sharing an overview of FTX International's insolvency. Most people probably don't care what he has to say, so feel free to scroll past idfc. 🤷🏻‍♀ ️ If you're curious, here's the link: https://sambf.substack.com/
@danprimack Dan Primack on x
Sam Bankman-Fried is out with his version of what happened at FTX, and tries to clear up the seeming contradiction on his Robinhood stock. @ShenLucinda has the story. https://www.axios.com/...
@kadhim @kadhim on x
This is probably the first time a defendant in a major fraud case has set out part of his defence on Substack https://twitter.com/...
@loopifyyy @loopifyyy on x
the extreme audacity to keep tweeting ...lol https://twitter.com/...
@mylesudland Myles Udland on x
https://sambf.substack.com/... https://twitter.com/...
@sruhle Stephanie Ruhle on x
SBF -believes things would be getting on the right track, if he were still running FTX 👇👇 https://twitter.com/...
@degeneratenews @degeneratenews on x
BREAKING: @SBF_FTX PUBLISHES “FTX PRE-MORTEM OVERVIEW” https://sambf.substack.com/...
@smilinglllama @smilinglllama on x
Started a substack lmao https://twitter.com/...
@avcrypto_ @avcrypto_ on x
$100b of net asset value $8b of net borrowing on leverage A whopping $7b of liquidity But blames CZ for nuking FTT https://twitter.com/... https://twitter.com/...
@byajperez A.J. Perez on x
The FTX era for the Miami Heat's home arena comes to an end. Today, a bankruptcy judge lifted a stay — in place since FTX's downfall two months ago — that had prevented Miami-Dade County from removing signage, finding a new venue sponsor. My @FOS story. https://frontofficesports.…
@leomschwartz Leo Schwartz on x
The judge overseeing the FTX bankruptcy approved a request from both Miami-Dade County and FTX to cancel the company's naming rights agreement. So long FTX Arena — you'll always be remembered fondly for the Celtics' 2022 playoffs win over the Heat https://storage.courtlistener.co…
@bytimreynolds Tim Reynolds on x
Expect the FTX Arena signage to be gone soon, after bankruptcy court terminates naming rights deal https://apnews.com/...
@wublockchain Wu Blockchain on x
According to WSJ, FTX Group's largest $1.1 billion investment in Genesis Mining only got 20% of the shares. SBF said that “he liked companies such as Genesis Digital because they were a different way to bet on the future of bitcoin”. https://www.wsj.com/...
@deitaone @deitaone on x
Alameda Made $1.1 Bln Investment in Bitcoin Miner Genesis Digital, Sources Say — WSJ More Than $500 Mln of Alameda Cash Went to Genesis Digital Founders, Sources Say — WSJ Genesis Digital Is Among Largest Assets in FTX-Alameda Bankruptcy — WSJ
@steve_hanke Steve Hanke on x
As former President Nazarbayev's advisor from 1994-95, I found the following to be of interest: Sam Bankman-Fried's hedge fund made a $1 billion bet on Genesis Digital Assets, a company whose plan was to set up a Bitcoin data-mining center in Kazakhstan. https://www.wsj.com/...

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