Sam Bankman-Fried, who co-founded major exchange FTX which he recently declared insolvent, has taken to Twitter to tell the community that he would like to start his business all over again.
He plans to compensate losses to customers first and, after that, to take care of investors.
Two major figures in the crypto industry responded to his shoutout — Kim Dotcom and the Dogecoin co-creator — but their reaction was totally different.
15) A few weeks ago, FTX was handling ~$10b/day of volume and billions of transfers.— SBF (@SBF_FTX) November 16, 2022
But there was too much leverage--more than I realized. A run on the bank and market crash exhausted liquidity.
So what can I try to do? Raise liquidity, make customers whole, and restart.
List of SBF's goals as he says he wants fresh start
Former billionaire and investor Sam Bankman-Fried tweeted that his goal, above all others, is to reimburse FTX customers, who lost their funds. To do that, he tweeted, he is meeting with regulators and "working with teams to do what we can for customers."
Then, according to another tweet in the thread, SBF wants to "clean up and focus on transparency." He reminded the audience that as early as just a few weeks ago, his exchange demonstrated roughly $10 billion of trading volume per day and handled billions of transactions.
The main problem, according to him, was "too much leverage" — a lot more than he realized there was.
"Raise liquidity, make customers whole, and restart"
What Bankman-Fried wants to try and do now is restart his business after raising liquidity and reimbursing customers for their losses. Despite his recent failure, he tweeted that he feels that he "might get somewhere."
Kim Dotcom and DOGE co-founder respond
Prominent entrepreneur and hacker Kim Dotcom, along with DOGE creator Billy Markus, responded to that thread by Bankman-Fried.
Dotcom, it seems, wants SBF to try and earn his second chance from the crypto community. He suggested that SBF take part in his online event that he referred to as "our FTX space," which will take place seven hours from now and answer questions of, perhaps, him and his audience from the crypto community.
Kim Dotcom stated that if he wants a second chance, SBF should compensate customers and be honest with the crypto community. In that case, they might be willing to start trusting him again.
You need to come on our FTX space in 7 hours and answer some questions. If you want to have any chance to raise the money you need to repay your customers then you have to be honest with the crypto community. If you do that you may have a shot and we are willing to help you.— Kim Dotcom (@KimDotcom) November 16, 2022
In another tweet, Dotcom explained that he wants hear from Sam what he thinks happened. And then, it will be up to crypto users to decide "if they want to help unsink this ship."
However, contrary to that, Billy Markus, who co-created Dogecoin, believes that "people, who commit enormous massive fraud" must not be given a second chance to commit the same mistake once again.
so, i don’t know about you guys, but i don’t think we should give people who commit enormous massive fraud a second chance to commit enormous massive fraud again. the jig is up. everyone knows what you really are. you lose. good day sir.