Here's the apology letter Sam Bankman-Fried sent to FTX employees

FTX's ex-CEO Sam Bankman-Fried blamed his "irrational decisions" connected "sh---y" circumstances successful a missive obtained by CNBC that was sent to employees of the bankrupt crypto exchange.

Bankman-Fried said helium "froze up successful the look of unit and leaks" arsenic his crypto empire rapidly mislaid capitalist assurance and customers rapidly withdrew billions of dollars from the platform.

"I mislaid way of the astir important things successful the commotion of institution growth. I attraction profoundly astir you all, and you were my family, and I'm sorry," continued the letter.

"It's excessively small excessively late," a existent FTX worker told CNBC. "I've ne'er seen an empathetic mentation of Sam, truthful I can't ideate he'll alteration his tune now." 

Bankman-Fried did not instantly respond to a petition for comment.

The Bankman-Fried post-mortem to employees outlines the ex-CEO's instrumentality connected the events that led to FTX's eventual downfall, on with an approximated accounting. The crypto speech went from a $32 cardinal valuation to filing for Chapter 11 bankruptcy protection successful astir a week.

Even arsenic Bankman-Fried accepted blasted for the people of events, helium inactive appeared convinced that helium was adjacent to redeeming his crypto empire successful the last hours earlier it entered Chapter 11 bankruptcy protection.

"We apt could person raised important funding; imaginable involvement successful billions of dollars of backing came successful astir 8 minutes aft I signed the Chapter 11 docs," wrote Bankman-Fried.

"Between those funds, the billions of dollars of collateral the institution inactive held, and the involvement we'd received from different parties, I deliberation that we astir apt could person returned ample worth to customers and saved the business," continued the letter.

Read the afloat missive from Bankman-Fried below.

"Hi all—

I consciousness profoundly atrocious astir what happened. I regret what happened to each of you. And I regret what happened to customers. You gave everything you could for FTX, and stood by the company—and me.

I didn't mean for immoderate of this to happen, and I would springiness thing to beryllium capable to spell backmost and bash things implicit again. You were my family. I've mislaid that, and our aged location is an bare warehouse of monitors. When I crook around, there's nary 1 near to speech to. I disappointed each of you, and erstwhile things broke down I failed to communicate. I froze up successful the look of unit and leaks and the Binance LOI and said nothing. I mislaid way of the astir important things successful the commotion of institution growth. I attraction profoundly astir you all, and you were my family, and I'm sorry.

I was CEO, and truthful it was my work to marque definite that, ultimately, the close things happened astatine FTX. I privation that I had been much careful.

I privation to springiness you a amended statement of what happened—one I should person written retired arsenic champion I understood it overmuch earlier.

Piecing things unneurotic recently, making approximations—I don't person afloat information entree close present to get precise answers—and marking everything to market, careless of liquidity, I judge that the events that led to the breakdown this period included:

1) A clang successful markets this outpouring that led to a astir 50% simplification successful the worth of collateral;

a. ~$60b collateral, ~$2b liabilities -> ~$30b collateral, ~$2b liabilities

2) Most of the recognition successful the manufacture drying up astatine once;

a. ~$25b collateral, ~$8b liabilities

3) A concentrated, hyper-correlated clang successful November that led to different astir 50% simplification successful the worth of collateral implicit a precise abbreviated play of time, during which determination was precise small marketplace bid-side liquidity;

a. ~$17b collateral, ~8b liabilities

4) A tally connected the slope triggered by the aforesaid attacks successful November;

a. ~$9b collateral

5) As we frantically enactment everything together, it became wide that the presumption was larger than its show connected admin/users, due to the fact that of aged fiat deposits earlier FTX had slope accounts:

a. ~$9b collateral, ~$8b liabilities

I ne'er intended this to happen. I did not recognize the afloat grade of the borderline position, nor did I recognize the magnitude of the hazard posed by a hyper-correlated crash. The loans and secondary income were mostly utilized to reinvest successful the business—including buying retired Binance—and not for ample amounts of idiosyncratic consumption.

I profoundly regret my oversight failure. In retrospect, I privation that we had done galore many things differently. To sanction a few:

a) being substantially much skeptical of ample borderline positions

b) examining accent trial scenarios involving hyper-correlated crashes and simultaneous runs connected the bank

c) being much cautious astir the fiat processes connected FTX

d) having a continuous show of full deliverable assets, full lawsuit positions, and different halfway hazard metrics

e) Putting successful much controls astir borderline management.

And nary of this changes the information that this each sucks for you guys, and it's not your fault, and I'm truly atrocious astir that. I'm going to bash what I tin to marque it up to you guys—and to the customers—even if that takes the remainder of my life. But I'm disquieted that adjacent past I won't beryllium capable to.

I besides privation to admit those of you who gave maine what I present judge to beryllium the close proposal astir pathways guardant for FTX pursuing the crash. You were right, of course: I judge that a period earlier FTX had been a thriving, profitable, innovative business. Which means that FTX inactive had value, and that worth could person gone towards helping to marque everyone much whole. We apt could person raised important funding; imaginable involvement successful billions of dollars of backing came successful astir 8 minutes aft I signed the Chapter 11 docs. Between those funds, the billions of dollars of collateral the institution inactive held, and the involvement we'd received from different parties, I deliberation that we astir apt could person returned ample worth to customers and saved the business.

There would person had to beryllium changes, of course: mode much transparency, and mode much controls successful place, including oversight of myself. But FTX was thing truly special, and you each helped marque it that. Nothing that happened was your fault. We had to marque precise hard calls precise quickly. I person been successful that presumption before, and should person known that erstwhile shitty things hap to us, we each thin to marque irrational decisions. An utmost magnitude of coordinated unit came, retired of desperation, to record for bankruptcy for each of FTX—even entities that were solvent—and contempt different jurisdictions' claims. I recognize that unit and empathize with it; a batch of radical had been thrust into challenging circumstances that mostly were not their fault. I reluctantly gave successful to that pressure, adjacent though I should person known better; I privation I had listened to those of you who saw and inactive spot worth successful the platform, which was and is my content arsenic well.

Maybe determination inactive is simply a accidental to prevention the company. I judge that determination are billions of dollars of genuine involvement from caller investors that could spell to making customers whole. But I can't committedness you that thing volition happen, due to the fact that it's not my choice. In the meantime, I'm excited to spot immoderate affirmative steps being taken, similar LedgerX being turned backmost on.

I'm incredibly thankful for each that you guys person done for FTX implicit the years, and I'll ne'er hide that.

—SBF"