There is an adage- “Fools rush where angels fear to tread,” and this adage completely fits Sam Bankman-Fried, or SBF, as he is commonly known. In his latest tweet, he acknowledged this fact. He said, ‘I got carried away by all the fame and glory, which led to my overconfidence.’
The founder of the beleaguered exchange, SBF, has started a series of strange tweets in the past few days. In his latest tweet, SBF acknowledged his hasty decisions caused the immense loss, and his overconfidence was responsible for this. Meanwhile, the US congress dealt another severe blow to the credibility of the FTX exchange when it ordered a hearing on FTX collapse, including Binance and others.
SBF Blames Wrong Leverage Calculation for the FTX Collapse
The crypto sector is facing an unprecedented crisis. First, the crash of stablecoin, Luna, and now the FTX collapse has eroded the considerable value of crypto assets, and today the crypto sector stands below a trillion dollars mark.
The FTX crash has exposed the weakest links in the crypt sector setup. SBF has acknowledged that his calculation of leverage is wrong. In a tweet, he said that he calculated the leverage if $5 billion, whereas in reality, it touched $13 billion. Also, the FTT token crash was a cause of the FTX demise.
The crypto community is not pleased with the reasons put forth by SBF and has asked for strict action against the erring founder of the crypto exchange. Twitterati is also indicting SBF of stealing user funds in FTX and using it by Alameda to make their investments.
More Companies Are Facing The Aftershocks Of FTX Collapse
The crash of FTX has affected every entity in the crypto sector, and even simple day-to-day operations are becoming problematic. Today Genesis has suspended all withdrawals from the exchange. The crypto world has been again shell-shocked by the news of BlockFi filing for bankruptcy.
Genesis, a company with an outstanding of $2.8 billion in loans, has suspended customer withdrawals.