Sam Bankman-Fried ‘Surprised’ Over FTX US Withdrawal Halt – Crypto News – Crypto News
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Sam Bankman-Fried ‘Surprised’ Over FTX US Withdrawal Halt – Crypto News

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Sam Bankman-Fried FTX News: In an interesting turn of events, Sam Bankman-Fried had on Thursday expressed doubts over the handling of fund withdrawals at FTX US. The FTX founder said he was sure of FTX US solvency when the company filed for bankruptcy around November 12. As part of the bankruptcy announcement, SBF stepped down from the role of CEO while John J Ray III has been appointed as his replacement to oversee the bankruptcy process.

Also Read: Mike Novogratz On Actual Bitcoin Price If Not For FTX Collapse

SBF Remark Aimed At New CEO John J Ray III

In a tweet, SBF said it was surprised as to why US withdrawals were turned off. Meanwhile, SBF’s comments may be seen as criticism on FTX’s handling under new CEO John J Ray III. Earlier in November 2022, the new CEO called the FTX situation ‘unprecedented’. Ray said the situation was unlike any corporate failure he had seen in his long career. SBF’s comments on FTX withdrawals read,

“When I filed, I am fairly sure FTX US was solvent, and that all US customers could be made whole. To my knowledge, it still is today. I was expecting that to happen. I am surprised it hasn’t. I am not sure why US withdrawals were turned off.

US Arm Of FTX Insolvent?

The latest statement from SBF also raised its concerns around the solvency of various FTX subsidiaries. He indicated that FTX US was actually solvent at the time of filing for chapter 11. bankruptcy, In a ripple effect from the crypto crash that ensued the liquidity crisis with FTX, crypto lender BlockFi officially filed for bankruptcy. In its bankruptcy filing, the company said it had a pending $275 million loan to FTX.

Also Read: Crypto Lender BlockFi Bankruptcy Live Updates: Failure Of FTX Cripple BlockFi, As Per Court Filings

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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