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Sam Bankman-Fried updates investors: ‘We got overconfident and careless, claims $13B leverage.

Sam Bankman-Fried updates investors: ‘We got overconfident and careless, claims B leverage.

Sam Bankman-Fried updates investors: ‘We got overconfident and careless, claims $13B leverage.

Former FTX CEO Sam Bankman-Fried said he was “wrong” in his estimates of the cryptocurrency exchange’s leverage before its collapse, claiming that it was not $5 billion but $13 billion. In a November 16 Twitter thread, Bankman-Fried said influence on FTX had increased to about $5 billion. The bank run resulted in about $4 billion being withdrawn daily, 25% of consumer wealth. “I was wrong,” said Bankman-Fried.

“The leverage wasn’t like $5 billion; it was about $13 billion. $13 billion in force, total run on the bank, total asset collapse, all at once. So, you don’t want that leverage.

Authorities in the Bahamas, the United States and Turkey have launched investigations into the collapse of the primary stock market. Officials reportedly discussed extraditing Bankman-Fried from the Bahamas to the United States for questioning. It’s unclear if this reported extradition was related to lawmakers on the House Financial Services Committee, who said they would “[wait] to hear from SBF at a hearing in December.”

FTX Group began bankruptcy proceedings by filing for bankruptcy on November 11 in the District of Delaware. The presentation included more than 130 companies, including FTX Trading, FTX US and Alameda Research. According to the latest bankruptcy court filings, the exchange could be accountable to more than 1 million creditors.

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