Sam Bankman-Fried’s Reflection on Alameda Research and FTX
In a draft Tweet thread revealed as part of his ongoing fraud trial, Sam Bankman-Fried planned to announce the closure of Alameda Research, the trading firm he co-founded. The draft thread was written two months before FTX’s collapse and showed Bankman-Fried deliberating on the future of the company. The publication of an article highlighting the close ties between FTX and Alameda Research made him nervous.
In the draft thread, Bankman-Fried described Alameda Research as both a success and a failure. He praised its role in backstopping the ecosystem and acting as a buyer during wild market conditions. He also commended Alameda’s activity after his departure, highlighting its contribution to global liquidity.
“Make sure we do the right things”
Bankman-Fried admitted his “biggest failure” in losing track of millions of dollars worth of Ripple tokens. He acknowledged that his accounting practices were lazy and that he had no idea how to address the frustration of his employees. He later realized that everything is his responsibility and that he couldn’t make everyone happy.
Blaming the Competition
Bankman-Fried dismissed claims that Alameda and FTX were too close, attributing them to competitors trying to distract from their own problems. However, he acknowledged that the PR cost was not worth it. He also took a veiled shot at critics who he believed used confidential customer information to manipulate their own markets.
Despite initially planning to wind down Alameda Research, Bankman-Fried couldn’t do so because it owed $14 billion to FTX. When confronted with this, he simply acknowledged the situation. The draft thread ended with the possibility of announcing Alameda’s closure and the continuation of FTX.
Hot Take: Reflections on Alameda Research and FTX
In Sam Bankman-Fried’s draft Tweet thread, he contemplated the closure of Alameda Research, acknowledging its successes and failures. He emphasized Alameda’s role in supporting the ecosystem and providing liquidity during volatile market conditions. Bankman-Fried also admitted his “biggest failure” of losing track of millions of dollars worth of Ripple tokens.
He attributed claims of a close relationship between Alameda and FTX to competitors seeking to deflect attention from their own issues. Additionally, he criticized competitors who allegedly manipulated markets using confidential customer information.
Despite his initial plan to wind down Alameda, Bankman-Fried couldn’t do so due to its debt to FTX. The draft thread ended with the possibility of announcing Alameda’s closure while FTX continued its operations.
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