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Sam Bankman-Fried, co-founder and CEO of FTX, in Hong Kong, China, on Tuesday, May 11, 2021.

Lam Yik | Bloomberg | Getty Images

FTX’s ex-CEO Sam Bankman-Fried blamed his “irrational decisions” on “sh—y” circumstances in a letter obtained by CNBC that was sent to employees of the bankrupt crypto exchange.

Bankman-Fried said he “froze up in the face of pressure and leaks” as his crypto empire quickly lost investor confidence and customers rapidly withdrew billions of dollars from the platform.

“I lost track of the most important things in the commotion of company growth. I care deeply about you all, and you were my family, and I’m sorry,” continued the letter.

“It’s too little too late,” a current FTX employee told CNBC. “I’ve never seen an empathetic version of Sam, so I can’t imagine he’ll change his tune now.” 

Bankman-Fried did not immediately respond to a request for comment.

The Bankman-Fried post-mortem to employees outlines the ex-CEO’s take on the events that led to FTX’s ultimate downfall, along with an approximated accounting. The crypto exchange went from a $32 billion valuation to filing for Chapter 11 bankruptcy protection in about a week.

Even as Bankman-Fried accepted blame for the course of events, he still appeared convinced that he was close to saving his crypto empire in the final hours before it entered Chapter 11 bankruptcy protection.

“We likely could have raised significant funding; potential interest in billions of dollars of funding came in roughly eight minutes after I signed the Chapter 11 docs,” wrote Bankman-Fried.

“Between those funds, the billions of dollars of collateral the company still held, and the interest we’d received from other parties, I think that we probably could have returned large value to customers and saved the business,” continued the letter.

Read the full letter from Bankman-Fried below.

Read Bankman-Fried’s full letter

“Hi all—

I feel deeply sorry about what happened. I regret what happened to all 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 any of this to happen, and I would give anything to be able to go back and do things over again. You were my family. I’ve lost that, and our old home is an empty warehouse of monitors. When I turn around, there’s no one left to talk to. I disappointed all of you, and when things broke down I failed to communicate. I froze up in the face of pressure and leaks and the Binance LOI and said nothing. I lost track of the most important things in the commotion of company growth. I care deeply about you all, and you were my family, and I’m sorry.

I was CEO, and so it was my duty to make sure that, ultimately, the right things happened at FTX. I wish that I had been more careful.

I want to give you a better description of what happened—one I should have written out as best I understood it much earlier.

Piecing things together recently, making approximations—I don’t have full data access right now to get precise answers—and marking everything to market, regardless of liquidity, I believe that the events that led to the breakdown this month included:

1) A crash in markets this spring that led to a roughly 50% reduction in the value of collateral;

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

2) Most of the credit in the industry drying up at once;

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

3) A concentrated, hyper-correlated crash in November that led to another roughly 50% reduction in the value of collateral over a very short period of time, during which there was very little market bid-side liquidity;

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

4) A run on the bank triggered by the same attacks in November;

a. ~$9b collateral

5) As we frantically put everything together, it became clear that the position was larger than its display on admin/users, because of old fiat deposits before FTX had bank accounts:

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

I never intended this to happen. I did not realize the full extent of the margin position, nor did I realize the magnitude of the risk posed by a hyper-correlated crash. The loans and secondary sales were generally used to reinvest in the business—including buying out Binance—and not for large amounts of personal consumption.

I deeply regret my oversight failure. In retrospect, I wish that we had done many many things differently. To name a few:

a) being substantially more skeptical of large margin positions

b) examining stress test scenarios involving hyper-correlated crashes and simultaneous runs on the bank

c) being more careful about the fiat processes on FTX

d) having a continuous monitor of total deliverable assets, total customer positions, and other core risk metrics

e) Putting in more controls around margin management.

And none of this changes the fact that this all sucks for you guys, and it’s not your fault, and I’m really sorry about that. I’m going to do what I can to make it up to you guys—and to the customers—even if that takes the rest of my life. But I’m worried that even then I won’t be able to.

I also want to acknowledge those of you who gave me what I now believe to be the right advice about pathways forward for FTX following the crash. You were right, of course: I believe that a month earlier FTX had been a thriving, profitable, innovative business. Which means that FTX still had value, and that value could have gone towards helping to make everyone more whole. We likely could have raised significant funding; potential interest in billions of dollars of funding came in roughly eight minutes after I signed the Chapter 11 docs. Between those funds, the billions of dollars of collateral the company still held, and the interest we’d received from other parties, I think that we probably could have returned large value to customers and saved the business.

There would have had to be changes, of course: way more transparency, and way more controls in place, including oversight of myself. But FTX was something really special, and you all helped make it that. Nothing that happened was your fault. We had to make very hard calls very quickly. I have been in that position before, and should have known that when shitty things happen to us, we all tend to make irrational decisions. An extreme amount of coordinated pressure came, out of desperation, to file for bankruptcy for all of FTX—even entities that were solvent—and despite other jurisdictions’ claims. I understand that pressure and empathize with it; a lot of people had been thrust into challenging circumstances that generally were not their fault. I reluctantly gave in to that pressure, even though I should have known better; I wish I had listened to those of you who saw and still see value in the platform, which was and is my belief as well.

Maybe there still is a chance to save the company. I believe that there are billions of dollars of genuine interest from new investors that could go to making customers whole. But I can’t promise you that anything will happen, because it’s not my choice. In the meantime, I’m excited to see some positive steps being taken, like LedgerX being turned back on.

I’m incredibly thankful for all that you guys have done for FTX over the years, and I’ll never forget that.

—SBF”

Crypto lending company Genesis suspends withdrawals, reportedly considering bankruptcy

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This robot loves cleaning pools more than you do! Meet Fanttik Aero X Robotic Pool Cleaner

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This robot loves cleaning pools more than you do! Meet Fanttik Aero X Robotic Pool Cleaner

Warm weather is nearly here, and there’s no better way to get your swimming pool ready than with the Fanttik Aero X Cordless Robotic Pool Cleaner. Developed by a core R&D team with DJI lineage, led by the former product lead of DJI FPV (First-Person View), it brings drone sensor technology to the world of pool-cleaning robotics.

And for a limited time, Fanttik is offering a special discount of $300, which drops the price from $1,199.99 to just $899.99! Plus, you’ll receive a free gift when you purchase through Fanttik’s official website or Amazon store.

Introducing the World’s First S-FSD™ TurboClean Robotic Pool Cleaner

12 S-FSDPrecision Sensors | 6-Hour Working Time | 5,382 sq.ft Cleaning Area | 16,000 mAh | 2-Year Warranty

The Aero X is proudly branded as “The World’s First S-FSD™ TurboClean Robotic Pool Cleaner,” showcasing cutting-edge technology that makes pool maintenance faster and easier than ever.

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Intelligent cleaning with S-FSD™ Technology

At the heart of Aero X is Fanttik’s innovative S-FSD™ Technology, boasting 12 sensors (2 water immersion sensors, 2 sonar sensors, 1 gyroscope sensor, 1 accelerometer sensor, 4 power sensors, 2 speed sensors) and powered by AquaPilot™ intelligent path planning. AquaPilot™ provides real-time tracking and coverage, ensuring the robot efficiently cleans every inch of your pool. Its advanced navigation algorithm calculates optimal cleaning routes, thoroughly addressing the floor, walls, and waterline without missing a spot.

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  • SwiftCruise™ Wheel System: With specially designed smaller front wheels and larger rear wheels, Aero X easily maneuvers around pool edges, corners, and tricky areas, adapting smoothly to different pool shapes and surfaces, including concrete, ceramic tiles, vinyl, fiberglass, and more.
  • AdapDrive™ Brush System: Its wide 15.7-inch rotating brush (the widest brush in the pool robot, vs. industry standard of 11.8–14.2 inches) dynamically adjusts its rotation speed for superior cleaning of hard-to-reach areas, delivering an impressive cleaning speed. Your pool will be spotless and swim-ready faster than ever.
  • Large-Scale Cleaning, Zero Battery Anxiety: Aero X with runtime up to 6 hours, with 16,000mAh, the largest battery capacity in wireless pool-cleaning robots, covering a cleaning area up to 5,382 sq.ft. Equivalent to cleaning 12 medium-sized home pools or 2.5 standard tennis courts in a single full charge.

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Managing your pool cleaner has never been simpler. Use the Fanttik app to set cleaning modes or control the robot in real time without removing it from the water. Need a quick adjustment? The handheld remote provides precise control, letting you target specific areas effortlessly.

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Fanttik’s Aero X isn’t just powerful—it’s incredibly user-friendly. Monitor the filter basket status through the app for optimal performance. When the battery runs low, Aero X intelligently docks itself at the poolside for easy retrieval. Real-time voice prompts make operating the Aero X an intuitive and enjoyable experience.

Ultimately, what Fanttik’s Aero X gives you is much more time for fun. You get more time with family and friends to enjoy the water and relax outdoors. Isn’t that the entire point of having a pool? The Aero X works hard and smart(comes with a 2-year warranty), so you don’t have to.

Award-winning design and trusted partnership

The Aero X is a recipient of the prestigious American Good Design Award, which is recognized for its innovation and excellence.

Fanttik, the official partner of the UFC, Brooklyn Nets, and NASCAR drivers Noah Gragson and Cole Custer, has leveraged years of expertise to perfect this outstanding product.

Don’t miss this limited-time offer on the Fanttik Aero X Cordless Robotic Pool Cleaner!

Enjoy a $300 discount for a limited time, dropping the Aero X from $1,199.99 to just $899.99 [page displayed discount + check the coupon (if available) + use code ELECTREKPOOL (for Amazon) at checkout], plus receive a free gift: 1X Fanttik W10 Apex Mini Chainsaw (able to cut 135 pieces of 2″ pine) OR 1X Fanttik C8 Nano Electric Scissors (easily cuts cardboard, carpet, and leather).

This exclusive offer is available on Fanttik’s official website and Amazon store. Act fast to revolutionize your pool maintenance experience this summer!

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Amazon and Nvidia say all options are on the table to power AI including fossil fuels

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Amazon and Nvidia say all options are on the table to power AI including fossil fuels

Anton Petrus | Moment | Getty Images

OKLAHOMA CITY — Amazon and Nvidia told a room of oil and gas executives this week that all options are on the table to power artificial intelligence including fossil fuels such as natural gas.

The tech and energy industries gathered in Oklahoma City at the Hamm Institute for American Energy to discuss how the U.S. can meet the growing energy needs for AI data centers

The Big Tech companies have invested mostly in renewable power in an effort to slash their carbon dioxide emissions, but they are now navigating a changed political environment. President Donald Trump has ditched U.S. commitments to fight climate change as he seeks to increase fossil fuel production, particularly natural gas.

There is now growing public acknowledgment from the tech industry that gas will be needed, at least in the near term, to help fuel AI.

“To have the energy we need for the grid, it’s going to take an all of the above approach for a period of time,” Kevin Miller, Amazon’s vice president of global data centers, said during a panel discussion Thursday. “We’re not surprised by the fact that we’re going to need to add some thermal generation to meet the needs in the short term.”

Amazon remains focused on slashing its carbon emissions, Miller said. It is the largest corporate purchaser of renewable energy and is investing in advanced nuclear and carbon capture technology to reduce the environmental impact of its energy consumption, the executive said.

But those advanced technologies will not come online until the 2030s and Amazon needs steady and secure power now, Miller said.

“We’re very explicit that meeting customers’ demands for capacity is first and foremost in our priority list, and so having access to power is first and foremost what we focus on,” Miller said. “And we have a goal to be net-zero carbon as a company by 2040 and are very focused on that.”

Nvidia is also focused on environmental impact but wants “all options on the table” as AI faces an energy crunch, said Josh Parker, the chipmaker’s senior director of corporate sustainability.

“At the end of the day, we need power. We just need power,” Parker said at the panel. “We have some customers who really prioritize the clean energy, and some customers who don’t care as much,” the executive said.

Anthropic co-founder Jack Clark called for data center developers to be realistic about the energy sources that are currently available. Anthropic estimates that 50 gigawatts of new power is needed by 2027, equivalent to about 50 nuclear reactors. AI demand can help drive the development of “new and novel sources” of power over the longer term, he said.

The idea of using coal, however, was met with unease. Trump recently signed an order that aims to boost coal production, citing demand from AI. The Amazon and Nvidia executives did not answer directly when asked during the panel whether they thought coal had a role play in powering AI.

“You have a broader set of options than just coal,” Clark said. “We would certainly consider it, but I don’t think I’d say it’s at the top of our list.”

Catch up on the latest energy news from CNBC Pro:

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Global energy giant RWE halts US offshore wind because of Trump

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Global energy giant RWE halts US offshore wind because of Trump

Global renewable developer and energy giant RWE has halted its US offshore wind operations “for the time being” because of the “political environment” the Trump administration has created.

RWE, Germany’s biggest electricity producer, said in March that it had dialed back its US offshore wind activities. But now, CEO Marcus Krebber said in a speech transcript, which he’ll deliver at the company’s Annual General Meeting in Essen on April 30, that its US offshore wind business is now closed (but it wasn’t all bad news): 

In the US, where we have stopped our offshore activities for the time being, our business in onshore wind, solar energy, and battery storage has so far been developing very dynamically. At the start of this year, we reached an important milestone when our US generation capacity hit the 10 gigawatt mark. The construction of a further 4 gigawatts is secured.

He went on to say that renewables have created regional value and jobs, but that the company remains “cautious given the political developments.” RWE has introduced more stringent requirements for future US investments:

All necessary federal permits must be in place. Tax credits must be safe harbored and all relevant tariff risks mitigated. In addition, onshore wind and solar projects must have secured offtake at the time of the investment decision. Only if these conditions are met will further investments be possible, given the political environment.

About half of RWE’s installed renewable capacity is in the US, where it’s the third-largest renewable energy company through its subsidiary, RWE Clean Energy. RWE holds the rights to develop US offshore wind projects in New York, Louisiana, and California.

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RWE paid $1.1 billion for the New York lease area in 2022, where it’s meant to develop the 3 gigawatt (GW) Community Offshore Wind with the UK’s National Grid. Community Offshore Wind was projected to come online in the early 2030s and expected to power more than a million homes.

The developer paid $5.6 billion for the Louisiana lease in the Gulf of Mexico in 2023 as the lone bidder for development rights, and the Canopy Offshore Wind project off Northern California was not expected to be completed for another decade.

Read more: Trump admin halts $5 billion NY offshore wind project mid-build


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