2022-11-30 08:04:26
TLDL/Summary from SBF's interview -
for those who missed the AMA or is not bothered to listen to the whole thing.
Link to the phone interview:
https://twitter.com/TiffanyFong_/status/1597627998626160640
1. SBF on FTX's alleged "backdoor" allowing him to execute commands & withdraw:
- SBF could not have built a backdoor, he said "I don't even know how to code."
- SBF had incorrect accounting balances for Alameda on FTX because people would wire money to Alameda & credit on FTX.
2. On using FTT tokens as collateral, illiquidity, price cash & bank run
- FTT has real value and better utility than most other tokens, has cash flow through it, has buy & burn.
- SBF says it's not that FTT was illiquid; instead it was massive correlation during extreme market moves when assets were getting dumped & bank run at the same time.
- FTT large % of balance sheet and used as collateral was a problem.
3. FTX US' solvency & Chapter 11 bankruptcy
- SBF regrets filing for FTX US bankruptcy
- FTX was 100% solvent
- FTX US customers should expect recovery.
4. On prioritizing Bahamian withdrawals
- He did it because it was critical for the exchange's future.
- "You do not want to be in a country with alot of angry people in it"
- "You do not want your company to be incorporated with alot of angry people in it"
- Was not insider withdrawals.
5. Donations to the Democratic Party
- "I donated about the same amount to both parties this year"
- SBF was one of the largest Republican donor
6. "Hack" that drained over $400M from FTX
- He doesn't know exactly who because they shut off all access from the system when they were halfway through exploring it.
- He is unsure - Either an employee or someone installed a malware
7. On his lawyer's response to his public apologies
- SBF told then to go fuck themselves when they asked never to admit he fucked up.
8. On filing for Chapter 11
- If he had not filed, all FTX users will be whole and be able to withdraw by now. Not just FTX US, but FTX International too.
- Just after he filed, $4B more came in of liquidity.
9. On expected recovery for FTX & FTX US creditors
- "If nothing happens, If I can never do anything again"; FTX US will get dollar on the dollar, and FTX International users would likely get $0.20-0.25 on the dollar
- "There is $4B dollars sitting here waiting to be injected"
- Next interview (Nov 30th) at NY Times/DealBook:
https://twitter.com/andrewrsorkin/status/1595517635441090565
- SBF on Twitter Spaces (Dec 2nd):
https://twitter.com/MarioNawfal/status/1597469671716184065
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