The Bitmex co-founder, Arthur Hayes, criticized Sam Bankman-Fried, the disgraced FTX co-founder, on Friday after Bankman-Fried printed his first weblog submit on his new Substack publication. “All this talk about what Alameda did is misdirection,” Hayes insisted. “It doesn’t matter how they hedged or didn’t hedge, or what dogsh** was of their portfolio.”
Bitmex Co-Founder Accuses Former FTX CEO of Avoiding Transparency
Arthur Hayes, co-founder of the cryptocurrency derivatives platform Bitmex, criticized Sam Bankman-Fried, former CEO of FTX, following a latest weblog submit. In the blog post, Bankman-Fried stated “Alameda failed to sufficiently hedge its market exposure” and “an extreme, quick, targeted crash precipitated by the CEO of Binance made Alameda insolvent.” Hayes, a prominent member of the cryptocurrency neighborhood, has important data about cryptocurrency derivatives exchanges, as Bitmex was one of many largest since its inception in 2014.
“The exchange should never lose money if a customer gets liquidated,” Hayes tweeted on Friday. “There is no excuse [for] giving [your] hedge fund Alameda an account with liquidation turned off. All this talk about what Alameda did is misdirection. It doesn’t matter how they hedged or didn’t hedge, or what dogsh** was in their portfolio,” the Bitmex co-founder added.
Hayes then advised Bankman-Fried if he actually needed to elucidate what occurred, he ought to inform the neighborhood why he thought it was a good suggestion to provide his hedge fund an account with the liquidation function turned off. Former Alameda CEO Caroline Ellison’s statements clarify that she totally “understood that executives had implemented special settings on Alameda’s FTX.com account that allowed Alameda to maintain negative balances in fiat currencies and cryptocurrencies.”
Alameda’s Negative Balance Account: An Enigma Wrapped in a Mystery
Furthermore, Bitcoin.com News reviewed a doc that allegedly belonged to Ellison that reveals the previous Alameda CEO had a leveraged FTX buying and selling account that was within the pink by destructive $1.3 billion in May 2022. Hayes emphasised that if Alameda was faraway from the equation by means of a authentic liquidation, Bankman-Fried’s now-defunct trade might nonetheless be operational. “If you had liquidated Alameda like any other FTX punter, FTX would still be operational. It’s just that simple,” Hayes tweeted. The Bitmex CEO added:
So cease speaking about Alameda and inform us the way you approached threat administration on the FTX stage. Why have been some shoppers handled otherwise than others. I’m eager to grasp why you thought turning off liquidation on a $bn notional place was prudent.
Many folks responded to the Twitter thread written by Hayes, and one particular person wrote: “Users paid for Alameda’s negative account equity. Shameful.” Others repeated Hayes’s sentiment, saying “it really is just that simple.” “It’s really the most basic question SBF keeps skirting around. At least he said he was sorry,” one other particular person added.
What are your ideas on the criticisms shared by Bitmex Co-Founder Arthur Hayes towards former FTX CEO Sam Bankman-Fried? Share your ideas within the feedback part under.
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Bitmex Co-Founder Criticizes Former FTX CEO for Not Liquidating Hedge Fund Alameda
The Bitmex co-founder, Arthur Hayes, criticized Sam Bankman-Fried, the disgraced FTX co-founder, on Friday after Bankman-Fried printed his first weblog submit on his new Substack publication. “All this talk about what Alameda did is misdirection,” Hayes insisted. “It doesn’t matter how they hedged or didn’t hedge, or what dogsh** was of their portfolio.”
Bitmex Co-Founder Accuses Former FTX CEO of Avoiding Transparency
Arthur Hayes, co-founder of the cryptocurrency derivatives platform Bitmex, criticized Sam Bankman-Fried, former CEO of FTX, following a latest weblog submit. In the blog post, Bankman-Fried stated “Alameda failed to sufficiently hedge its market exposure” and “an extreme, quick, targeted crash precipitated by the CEO of Binance made Alameda insolvent.” Hayes, a prominent member of the cryptocurrency neighborhood, has important data about cryptocurrency derivatives exchanges, as Bitmex was one of many largest since its inception in 2014.
“The exchange should never lose money if a customer gets liquidated,” Hayes tweeted on Friday. “There is no excuse [for] giving [your] hedge fund Alameda an account with liquidation turned off. All this talk about what Alameda did is misdirection. It doesn’t matter how they hedged or didn’t hedge, or what dogsh** was in their portfolio,” the Bitmex co-founder added.
Hayes then advised Bankman-Fried if he actually needed to elucidate what occurred, he ought to inform the neighborhood why he thought it was a good suggestion to provide his hedge fund an account with the liquidation function turned off. Former Alameda CEO Caroline Ellison’s statements clarify that she totally “understood that executives had implemented special settings on Alameda’s FTX.com account that allowed Alameda to maintain negative balances in fiat currencies and cryptocurrencies.”
Alameda’s Negative Balance Account: An Enigma Wrapped in a Mystery
Furthermore, Bitcoin.com News reviewed a doc that allegedly belonged to Ellison that reveals the previous Alameda CEO had a leveraged FTX buying and selling account that was within the pink by destructive $1.3 billion in May 2022. Hayes emphasised that if Alameda was faraway from the equation by means of a authentic liquidation, Bankman-Fried’s now-defunct trade might nonetheless be operational. “If you had liquidated Alameda like any other FTX punter, FTX would still be operational. It’s just that simple,” Hayes tweeted. The Bitmex CEO added:
Many folks responded to the Twitter thread written by Hayes, and one particular person wrote: “Users paid for Alameda’s negative account equity. Shameful.” Others repeated Hayes’s sentiment, saying “it really is just that simple.” “It’s really the most basic question SBF keeps skirting around. At least he said he was sorry,” one other particular person added.
What are your ideas on the criticisms shared by Bitmex Co-Founder Arthur Hayes towards former FTX CEO Sam Bankman-Fried? Share your ideas within the feedback part under.
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