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FTX founder SBF issued an apology letter admitting serious mistakes that led the company into a liquidity crisis.
The founder of FTX, SBF, recently issued an apology letter expressing regret for the recent crisis faced by FTX. In the letter, he admitted to making serious mistakes that led the company into trouble.
SBF stated that the total market value of assets and collateral of FTX International is still higher than user deposits, but there are severe liquidity issues. He explained that there was a misjudgment of the company's leverage and liquidity situation, and the actual circumstances are much worse than expected. On Sunday, there were approximately $5 billion in withdrawal requests, far exceeding historical highs, further exacerbating the crisis.
SBF attributed the cause of the crisis to improper account labeling and insufficient communication internally. He promised to make every effort to take responsibility and do the right thing for users. He is currently negotiating with multiple parties to seek new investments to improve liquidity.
SBF also stated that Alameda Research will cease trading activities on FTX. He denied rumors of misconduct by Alameda Research but deemed it necessary to withdraw from trading.
Regarding FTX US, SBF emphasized that its operations are normal, liquidity is sufficient, and users can withdraw normally.
SBF apologized multiple times in the letter, expressing his willingness to take full responsibility for this. He promised to work on improving FTX's transparency and is willing to resign from the CEO position if necessary.
This apology letter shows the severe situation FTX is currently facing, but SBF stated that he will do everything he can to save the situation and protect user interests. The coming week will be crucial, and there remains a lot of uncertainty about whether FTX can get through this difficult time.