SBF claims FTX had ~$60B in collateral in spring 2022, before a credit squeeze, market selloff, and “run on the bank” reduced it to $9B and led to bankruptcy
and Themselves” Now he has become a doormat apparently. https://twitter.com/... Cas Piancey / @caspiancey : Remember when the FDIC forced Brett Harrison, former CEO of FTX US, to delete a tweet claiming they were FDIC insured? Feels prescient now for some reason. https://twitter.com/... David Sacks / @davidsacks : The media have received their talking points. https://twitter.com/... Liz Hoffman / @lizrhoffman : This mostly makes sense to me. FTX had a lot of collateral ($60bn) against not that many liabilities ($2bn). The problem is that collateral was monopoly money and the liabilities were ... real money. Just real basic banking stuff. @topshotfund : a story in three parts... “just a run on the bank” https://twitter.com/... David Z. Morris / @davidzmorris : @SBF_FTX is still fucking lying. Especially about the “run on the bank,” but also about ... everything else https://twitter.com/... John E Deaton / @johnedeaton1 : Everyone needs to appreciate the outrage. The @DOJCrimDiv has taken jurisdiction and charged wire fraud (18 U.S.C. 1343) over non-Americans, with no contacts with the U.S. (let alone like the ones described below) over a single phone call, email, fax or bank transfer. 🤬 https://twitter.com/... Liz Hoffman / @lizrhoffman : See here (SBF's words not mine, a bankruptcy trustee will sort it out, etc): Collateral - mostly crypto - went from being “worth” $60bn to $9bn *fast* Even a “conservative” balance sheet goes upside-down very fast when the assets are garbage and the debts are real. See: Lehman https://twitter.com/... @crypto_bitlord7 : CZ is hands down the goat 🐐 https://twitter.com/... Amjad Masad / @amasad : @hueykwik “This appears to just be a run on the bank” ?? https://twitter.com/... John / @johnnyp135dfs : A “run on the bank” shouldn't be possible on an exchange unless they did a fraud - the reporting on this SBF/FTX situation continues to be so insane https://twitter.com/... @milessuter : The FTX situation has been a massive redpill for anyone that previously trusted the media but saw with their own eyes the events unfold over last few week. ‘The CEO literally admitted to the most blatant form of fraud, but as a mere journalist™ who am I to pass judgement here?’ https://twitter.com/... Sam / @futurenomics : Let me explain this in very simple language： 1) Alameda borrows user deposits from FTX against Fake Token 1 2) Alameda uses this money to buy more of Fake Token 1 3) Fake Token 1 goes up 4) Alameda borrows more money. 5) Repeat :) This is not just a run on the bank. https://twitter.com/... @satsdart : not a single mention of using customer funds, why does he keep pretending like holding the same amount of customer funds in “collateral” is enough?? so stupid https://twitter.com/... @investmentshulk : SETTING ASIDE WHETHER BERNIE MADOFF COMMITTED FRAUD OR NOT - A QUESTION FOR THE DOJ - THIS APPEARS TO BE JUST A RUN ON THE BANK. SAME BASIC GRAVITATIONAL FORCES AT WORK HERE. https://twitter.com/... Neil Jacobs / @neiljacobs : JFC. SBF should be in jail for decades. What is wrong with you people? https://twitter.com/... Leigh Drogen / @ldrogen : could have just replaced all of this with “I stole $10B by making a related party loan to myself, peace out mfers” https://twitter.com/... Bearica Wall / @ercwl : Man still thinks his exchange was a hedge fund In was in the FTX terms that user deposits aren't to be commingled with its trading business You can't denominate crypto assets into a dollar calculation as a custodian. That's pure fraud. GTFO https://twitter.com/... David Belle / @davidbelle_ : Guy is still trying to convince people it was simply the market that caused this. Biggest POS for a while. https://twitter.com/... Romano / @rnr_0 : I think he forgot to mention - Using customer deposits - Leaking listings to Alameda - Alameda being exempt from liquidations - Lied about being a virgin - Backdoor to transfer customer funds - Lying about balance sheet - Low float high FDV VC-nomic tokens List goes on https://twitter.com/... @alexhern : Two phrases in this that stand out in how casually they are slipped in: “marking everything to market, regardless of liquidity” and “generally” using loans to reinvest in the business, rather than for “large” amounts of personal consumption https://twitter.com/... @inartecarlodoss : Can someone explain to me, how the fuck is Assange's life totally destroyed for over 10 years now and SBF is still wearing his oversized shorts running around free in the Bahamas? Andy / @andy8052 : SBF still incapable of understanding that his illiquid shitcoins are not worth billions of dollars https://twitter.com/... Cas Piancey / @caspiancey : I think questions about why SBF hasn't been arrested are actually fair now. Madoff was arrested within a few days of the collapse of his fund. He was allowed to post $10 million bail, but he was arrested. @thormaximalist : @lizrhoffman @CoinDesk SBF is a criminal. He built a ponzie scheme, with a backdoor. He opened withdrawals to bahamians (insiders) under false pretenses. He has cashed out $100ms from stocks and billions from loans to himself. It wasn't bad risk management, it was theft and embezzlement. Sean Tuffy / @smtuffy : In fairness to SBF, if I had stolen money from organized crime, terrorists, drug cartels, and rouge states - I too would be doing everything thing I could to get customers their money back @macrocephalopod : Incredible that SBF can still be writing shit like this and expect to be taken seriously while ignoring the #1 most important fact — in a real business, if you custody customer funds then ASSETS = LIABILITIES If that is ever not the case then you have already fucked up. https://twitter.com/... @longshorttrader : Question: How do you know SBF is lying? Answer: As soon as his lips move, or he puts words into writing. Despite the irrefutable evidence that SBF and alameda/ftx were frauds since inception, I'm amazed people actually take what he says at face value: https://twitter.com/...
CoinDeskNikhilesh De
Context & Ripple Effects
SBF's account of FTX's collapse — roughly $60B of collateral in spring 2022 shrinking to $9B under a credit squeeze and a run on the bank — lands in the middle of an already hostile record. The bankruptcy filing had already shown token holdings worth just $659K, over $3.3B in Alameda loans to SBF personally, and auto-deleted messages, while Reuters reported spreadsheets shown to FTX's own legal teams with at least $1B of client funds unaccounted for.
His framing also collides with the regulatory trail: the FDIC had earlier forced former FTX US chief Brett Harrison to delete a tweet claiming deposits were FDIC-insured, and the DOJ has taken jurisdiction with wire fraud charges. The question his $60B-to-$9B story answers — where did the money go — is exactly what the January hearing's $5B+ in recovered assets and the unaccounted-funds spreadsheets are trying to pin down.
First-order effects
FTX creditors and the DOJ now have two competing ledgers to reconcile: SBF's market-driven collapse narrative versus court filings showing $900M in liquid assets the day before bankruptcy and a $65B Alameda credit line.
SBF's public defense puts him directly at odds with his own bankruptcy lawyers, who told the same-week hearing that a substantial amount of assets had been stolen from customer accounts.
Second-order effects
Alameda Research sits at the center of every version of the story — whether collateral evaporated in a selloff or was borrowed against user deposits — so its trading book becomes the key evidence in both the fraud case and asset recovery.
The FDIC-insurance episode resurfaces as a template for how FTX marketed trust it didn't have, giving regulators a concrete consumer-protection angle alongside the wire fraud charges.
Third-order effects
If the pattern holds — exchange liabilities denominated in dollars but collateral held in self-issued or illiquid tokens — the industry moves toward enforced segregation of customer assets and proof-of-reserves standards rather than self-reported balance sheets.
The gap between what exchanges claimed and what courts are recovering is widening the legitimacy divide that will shape how U.S. regulators treat offshore crypto platforms generally.
The trend: Crypto exchange failures are shifting from liquidity-crisis narratives toward court-audited balance sheets, with customer-asset segregation becoming the regulatory fault line.
Setting aside whether there was fraud or not - a question for DOJ - this appears to just be a run on the bank. Crypto tokens are objectively riskier/stupider collateral than mortgage bonds, but neither are cash! Same basic gravitational forces at work here.
The fact he is going to be speaking on stage at a damn conference rather than in custody being investigated for fraud and theft is incredible. He's an agent of the establishment. It's disgusting. https://twitter.com/...
SBF is American, spent time lobbying US politicians, had American employees, had US investors, owns US subsids, marketed in the US, spent time on US soil, had hundreds of thousands of US clients. Where the hell is the US criminal justice system? Are we not a nation of laws?
Remember when the FDIC forced Brett Harrison, former CEO of FTX US, to delete a tweet claiming they were FDIC insured? Feels prescient now for some reason. https://twitter.com/...
“Setting aside whether there was fraud or not - a question for DOJ - this appears to just be a run on the bank.” Absolutely unreal how journos are working 24/7 to salvage SBF's reputation. https://twitter.com/...
Reminders: 1. Madoff was in cuffs the next day when his sons turned him in. 2. SBF stole customer deposits from his exchange to commit various financial crimes. 3. Losses from SBF's fraud will exceed total losses in the Madoff case (<$4bn today). 4. @nytimes is a clown show. http…
Sorkin is the author of Too Big to Fail... you know, “How Wall Street and Washington Fought to Save the Financial System—and Themselves” Now he has become a doormat apparently. https://twitter.com/...
The Madoff of crypto somehow remains free after stealing 10 billion dollars in customer funds. And the NYT summit is somehow still on 😂 https://twitter.com/...
An anarchist understands that laws exist to provide the ruling regime with the veneer of moral legitimacy, to provide pretexts for prosecuting enemies of the regime, and to be ignored when broken by regime loyalists. https://twitter.com/...
The @nytimes sensationalizing and giving this criminal a platform is one of the most disgusting things I've seen in crypto. Shame on these people https://twitter.com/...
that's showbiz baby bet this will be the best attended event @nytimes has ever had because people can't look away from a car crash 💥 it's gross but this is how attention works. it's why you watched the fire fest docs. it's why you watched the jeffrey dahmer shows. https://twitter…
First the NYT publishes that awful puff piece about SBF. Now they're hosting him at the DealBook Summit. How low can they fall? https://twitter.com/...
1/4 The NYT lost all integrity. Their articles have been nothing but softball pieces supporting someone who has flat out stolen customer deposits. It's been confirmed by insiders and hard evidence that this was a known and illegal misuse of funds. https://twitter.com/...
Everyone needs to appreciate the outrage. The @DOJCrimDiv has taken jurisdiction and charged wire fraud (18 U.S.C. 1343) over non-Americans, with no contacts with the U.S. (let alone like the ones described below) over a single phone call, email, fax or bank transfer. 🤬 https://t…
See here (SBF's words not mine, a bankruptcy trustee will sort it out, etc): Collateral - mostly crypto - went from being “worth” $60bn to $9bn *fast* Even a “conservative” balance sheet goes upside-down very fast when the assets are garbage and the debts are real. See: Lehman ht…
A “run on the bank” shouldn't be possible on an exchange unless they did a fraud - the reporting on this SBF/FTX situation continues to be so insane https://twitter.com/...
The FTX situation has been a massive redpill for anyone that previously trusted the media but saw with their own eyes the events unfold over last few week. ‘The CEO literally admitted to the most blatant form of fraud, but as a mere journalist™ who am I to pass judgement here?’ h…
Let me explain this in very simple language： 1) Alameda borrows user deposits from FTX against Fake Token 1 2) Alameda uses this money to buy more of Fake Token 1 3) Fake Token 1 goes up 4) Alameda borrows more money. 5) Repeat :) This is not just a run on the bank. https://twitt…
not a single mention of using customer funds, why does he keep pretending like holding the same amount of customer funds in “collateral” is enough?? so stupid https://twitter.com/...
SETTING ASIDE WHETHER BERNIE MADOFF COMMITTED FRAUD OR NOT - A QUESTION FOR THE DOJ - THIS APPEARS TO BE JUST A RUN ON THE BANK. SAME BASIC GRAVITATIONAL FORCES AT WORK HERE. https://twitter.com/...
Man still thinks his exchange was a hedge fund In was in the FTX terms that user deposits aren't to be commingled with its trading business You can't denominate crypto assets into a dollar calculation as a custodian. That's pure fraud. GTFO https://twitter.com/...
I think he forgot to mention - Using customer deposits - Leaking listings to Alameda - Alameda being exempt from liquidations - Lied about being a virgin - Backdoor to transfer customer funds - Lying about balance sheet - Low float high FDV VC-nomic tokens List goes on https://tw…
Two phrases in this that stand out in how casually they are slipped in: “marking everything to market, regardless of liquidity” and “generally” using loans to reinvest in the business, rather than for “large” amounts of personal consumption https://twitter.com/...
Can someone explain to me, how the fuck is Assange's life totally destroyed for over 10 years now and SBF is still wearing his oversized shorts running around free in the Bahamas?
I think questions about why SBF hasn't been arrested are actually fair now. Madoff was arrested within a few days of the collapse of his fund. He was allowed to post $10 million bail, but he was arrested.
@lizrhoffman @CoinDesk SBF is a criminal. He built a ponzie scheme, with a backdoor. He opened withdrawals to bahamians (insiders) under false pretenses. He has cashed out $100ms from stocks and billions from loans to himself. It wasn't bad risk management, it was theft and embez…
In fairness to SBF, if I had stolen money from organized crime, terrorists, drug cartels, and rouge states - I too would be doing everything thing I could to get customers their money back
Incredible that SBF can still be writing shit like this and expect to be taken seriously while ignoring the #1 most important fact — in a real business, if you custody customer funds then ASSETS = LIABILITIES If that is ever not the case then you have already fucked up. https://t…
Question: How do you know SBF is lying? Answer: As soon as his lips move, or he puts words into writing. Despite the irrefutable evidence that SBF and alameda/ftx were frauds since inception, I'm amazed people actually take what he says at face value: https://twitter.com/...
SBF is still totally delusional tbh it's all way worse than i think he can come to terms with i think he'll have some time to himself to ponder it all in its entirety, soon™ https://twitter.com/...
SBF was supposed to custody deposits at a 1:1 ratio. He didn't. He stole your money and used it for something else. That's the only story. There is no other story. Call out journalists agressively. They keep lying with impunity. They promoted this ponzie on the way up. Hard.
@lizrhoffman @CoinDesk “hi all - i am a criminal, fraud, and psychopath. i am sorry my pathetic house of cards couldn't continue swindling more people. love you all xoxo” - SBF
The media selectivity at covering SBF vs other bitcoin or crypto events has been unusual, regardless of where you are in the political spectrum. https://twitter.com/...
Why is this journo uncritically accepting Sam's ludicrous spin? Well let's start with Sam's “donations” to Semafor, the publication she writes for https://twitter.com/...
@lizrhoffman Leaving out the part about SBF just blatantly stealing customer funds and writing checks to himself, his parents and his insiders? It is a lot more than just a “run on the bank”.
The loans and secondarysales were generally used to reinvest in the business-including buying out Binance-and not forarge amounts of personal consumption.
@DoombergT From that thread, she seems to think it is just, “a run on the bank”. She leaves out the part about SBF stealing customer funds and “loaning” himself over $1 billion. https://twitter.com/...
what is so hard to understand? wannabe wunderkind, drunk on his own perceived abilities and attention from celebs and big VCs put on shoes way too big, created mechanisms to protect himself, used those mechanisms a the expense of customers, lost it all, and cannot come to terms
there is no charitable explanation based on publicly available information, this was clearly fraud and theft a con man continuing to con a new generation of marks, this time most of the journalists it seems would be nice if one could do their job absolutely embarrassing
it would actually be great if the media stopped giving SBF the benefit of the doubt ("it was all just an accounting and leverage mistake") and instead realized that he was a thief from the beginning, creating illicit backdoors between FTX user funds and Alameda https://twitter.co…
“The loans and secondary sales were generally used to reinvest in the business—including buying out Binance—and not for large amounts of personal consumption.” - SBF “Members of the jury, would you consider a $40 million penthouse as a ‘large personal consumption’.”
This mostly makes sense to me. FTX had a lot of collateral ($60bn) against not that many liabilities ($2bn). The problem is that collateral was monopoly money and the liabilities were ... real money. Just real basic banking stuff.
Don't let this rubbish heap of a fake apology distract from what's not mentioned: the billions of stolen customer funds secretly shipped to an insolvent hedge fund with no regard for ethics. https://twitter.com/...
When you see a journalist carrying water for SBF — “it's just a bank run” — it's 100% the case they're on the payroll. https://twitter.com/... https://twitter.com/...
Note how he denominates assets and liabilities in USD If he wasn't trading customer crypto assets, then both would decrease *together* when market down Overall, this is basically an admission that he was trading other peoples' property in favour of propping up $FTT, etc. https://…
The wildest part of all the crypto scandals is how many of the masterminds are on the run in extradition free countries just tweeting & dropping in on podcasts like they just happen to be on vacation. https://twitter.com/...
Although this is meant to seem like acceptance of responsibility, SBF's “apology” is actually self-serving. He thinks he's helping himself by focusing on mismanagement rather than fraud, but he is just locking himself into a story in the early stages of DOJ & SEC investigations. …
SBF's letter to employees: We likely could have raised significant funding; potential interest in billions of dollars of fundingcame in roughly eight minutes after I signed the Chapter 11. Maybe there still is a chance to save the company. https://twitter.com/...
Apart from that... 1) SBF no longer has any position in the company. He should not be writing to employees. 2) There are actual lies in this missive, and the whole thing seems intended to mislead. He's still gaslighting people. https://twitter.com/...
Here's the thing that you learn after the age of 7: An apology also requires you to take accountability for your actions. Just mouthing the words while continuing to lie isn't an apology. https://twitter.com/...
In a world where Elizabeth Holmes got 11 years for Theranos and the current FTX CEO called it “worse than Enron”, how is this dude still writing aw shucks emails? Aren't his parents law professors? Are we in the Multiverse of Madness? WTF is going on? https://twitter.com/...
This is insane. FTX was a custodian, not a hedge fund. If I give you money to put in a vault and you lose it gambling, the problem isn't your gambling prowess. https://twitter.com/...
SBF another in a long line of sociopaths that includes Do Kwon, Su Zhu, Alex Mashinsky and Kyle Davies who show little to no true remorse for their actions and imply that the fraudulent insider dealings that doomed them were a byproduct of market forces https://www.coindesk.com/.…
Bullshit is he sorry. Man's out there spending clients money on properties. If he meant it, sell them and give something back to FTX clients https://twitter.com/... https://twitter.com/...
Nothing in here about misappropriating billions of dollars of customer deposits, loaning himself $1b, giving execs huge amounts of $, all the property purchases, and on and on. But not expecting him to confess to wire fraud at this point. https://twitter.com/...
This letter by @SBF_FTX is total horseshit. On its face it makes no sense. He said there was $2B in liabilities in paragraph 1. In paragraph 2 he says there was $8B in liabilities. My immediate thought was that equals $6B in customer funds that he used and lost. https://twitter.c…
1/2 Unbelievable that in his “regrets” lost to staff there is no regret about gambling user funds or building a back door. Just keeps talking about too much leverage and too many liabilities without realizing it was their direct, illegal choices. https://twitter.com/...
Sam has shared the below letter with FTX employees. The takeaway is an absence of responsibility with zero admission that the factors that led to this debacle were in his control. Sam claims that he didn't “realize the magnitude of risk.” The main remorse is that he got caught. h…
2/2 Already broke down in this thread the math behind the leverage claim being impossible without Alameda having a non-liquidating, no limit, backdoor account: https://twitter.com/...