Crypto News

SBF’s previous comments on crypto project failures come back

A few months earlier, FTX CEO SBF said several “tier three” crypto exchanges were in bankruptcy but had yet to be uncovered. At the time, several crypto lending platforms suffered massive financial contagion after the Three Arrows Capital (3AC) fallout as a result of Terra’s spectacular collapse.

His comments clearly haven’t aged well now that his empire seems to be crumbling.

Crypto projects fail, FTX no exception

Sam Bankman-Fried’s story of how he built his crypto empire from his Berkeley apartment may not be the classic success story that can be written on the walls of history. However, the crypto billionaire managed to rise to cult status at just 29 years old thanks to the frenzied bull run of 2021.

No one in history has come this far so young. When he debuted on the cover of Forbes last year, the business magazine said that only “Zuck (Facebook’s Mark Zuckerberg) was so young (29!) so rich ($23 billion).”

And as financial troubles worsened, SBF stepped in to bail out struggling companies like Voyager Digital and BlockFi. He even admitted his willingness to “get a bit of a bad deal here if that’s necessary to somehow stabilize things and protect customers.”

During the same period, the chief executive also highlighted the existence of certain companies that “fundamentally have gone too far and it is impractical to stop them for reasons such as a significant hole in the balance sheet or regulatory issues.” Then he added that “there’s not much business left to save.” Those words haunted him now.

As it turns out, FTX isn’t okay either. A leaked balance sheet was enough to expose the troubles of the exchange and its sister trading firm Alameda. A Twitter spat between SBF and CZ left many in the community concerned that the former’s trading platform could be the next crypto implosion. But it wasn’t until Binance officially announced that it agreed to buy its crypto competitor that all hell broke loose.

FTT crashed 80% and wiped out more than $2 billion in value.

Cover up bad blood with CZ?

SBF positioned itself as an industry lender of last resort after revealing its plans to prevent some insolvent crypto lenders from falling into a failed series of dominoes that painted something of a redeemer picture.

This was soon perceived as “unkind” by many, including CZ himself, who previously took a taunt at the FTX boss by saying, “Don’t perpetuate bad companies. Let them fail.” In hindsight, CZ contradicted itself about the recent takeover bid for the company, which now has one foot in the grave.

But bad blood between the two titans has always been there, even when Binance was an early investor in FTX. Several community members have pointed out that SBF may have deleted multiple tweets depicting the same thing. One is now deleted tweet Of note is Bankman-Fried’s response to FTX Digital Markets Co-CEO Ryan Salame last month, in which the latter said:

“It has been an absolute pleasure to watch @cz_binance over the past week on Twitter as the extremely difficult but transformative debates to ensure the crypto industry moves forward in the best possible way.”

SBF’s cheeky response was,

“I’m very excited to see him representing the industry in DC in the future! Uh, he’s allowed to go to DC, right?”

This passive-aggressive barb was from October. While the bombshell report on Alameda’s balance sheet composition may have been the final straw, some community members speculated that the exchange could be one of the reasons for Zhao’s move to reduce Binance’s exposure to FTT tokens, leading to the liquidity crisis in FTX led .

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Source: Crypto News Deutsch

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