Here’s the apology letter Sam Bankman-Fried sent to FTX employees: ‘When sh—y things happen to us, we all tend to make irrational decisions’
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.
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“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”
Nevada utility NV Energy’s largest battery energy storage system sits on a former coal-fired power plant site and will save customers a lot of money.
Swiss-US battery energy storage specialist Energy Vault (NYSE: NRGV) built the 220 MW/440 MWh grid-tied Reid Gardner Battery Energy Storage System (BESS) in Moapa, Nevada, 50 miles northeast of Las Vegas. Energy Vault will maintain the system.
The new BESS is on the site of the former 557-megawatt (MW) coal-fired Reid Gardner Generating Station, which was demolished in 2019.
It’s a two-hour energy storage system that stores and dispatches excess wind and solar power. It’s charged and discharged daily and dispatches stored renewable energy at peak consumption hours to help meet demand.
NV Energy CEO Dough Cannon explained to local TV network KTNV:
The hours that [NV Energy] really get concerned about are from about 5 pm to 9 pm. Because what happens, at that point, is the solar energy has really started to ramp off as the sun’s going down. And so, we have often had to go out to the market, the energy market, and buy energy to meet the needs between 5 pm and 9 pm.
Over the last couple of years, on average, we’ve paid $250 a unit of energy during those hours. We look at a project like this, and this can deliver energy for closer to $100 an hour a unit of energy.
The Inflation Reduction Act covered 40% of the project’s $250 million cost. Cannon told KTNV that thanks to the new BESS, the utility’s customers would see a 15-20% reduction in their bills by the end of 2024.
Read more: US, other G7 countries to phase out coal by early 2030s
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –ad*
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Ford Pro is now taking orders for the newest version of its commercial EV, the E-Transit, with up to 32% more range and faster charge times.
The 2024 E-transit‘s larger 89 kWh battery (up from 67 kWh) provides an estimated range of up to 159 miles. Ford says that makes it capable of new use cases such as refrigerated delivery.
The enhanced E-Transit also features dual onboard chargers that deliver a 22% faster charge time using Ford Pro’s 80A Series 2 charger and Ford Pro charging software. So, charging at Level 2 brings it from zero to fully charged in just over six hours, making it ideal for overnight charging.
The E-Transit also has improved DC charging, with 176 kW charging capability, up from 115kW. As my colleague Jameson Dow explained in March, “When connected to a suitably quick charger, this means a 2024 E-Transit (low roof model) can get 67 miles of range in 15 minutes, an improvement of 49% over the previous model.” All new E-Transits will have access to Ford’s new NACS adapter in addition to its CCS port.
Ford offers the E-transit in two lengths, three roof heights, three body styles, and up to 487 cubic feet of cargo volume.
The latest iteration of the US’s best-selling commercial EV costs $1,100 more than 2023’s base price. So before destination fees, the 2024 enhanced E-Transit’s price starts at $51,095. But it qualifies for the $7,500 federal EV tax credit, which brings its price down to $43,595, excluding possible state and utility incentives. Ford E-Transit orders can be placed through a Ford dealer.
To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. – ad*
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Environment
Get Blix’s Ultra e-bike with free accessories from $1,399, Anker PowerCore Reserve Power Station $110, and more
Kicking off this week’s Green Deals is a new Spring Savings sale from Blix Bikes that is taking up to $700 off its e-bike models and also giving you up to $465 in free add-on accessories, with the Ultra Fat-Tire All-Terrain e-bike hitting a new $1,399 low. It is joined by the return of the Anker PowerCore Reserve 60,000mAh Power Station to $110, as well as the Bosch Tronic 4000 6.5kW Electric Tankless Water Heater at $158. Plus all of the other green deals that have dropped today or are still hanging on from last week.
Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.
Blix Ultra Fat-Tire All-Terrain e-bike hits new $1,399 low with $328 in free accessories
Blix Bikes has an ongoing Amazing Spring Savings sale that is taking up to $700 off its e-bikes and also including up to $500 in free add-on accessories while supplies last. One of the notable standouts is Blix’s Ultra Fat-Tire All-Terrain e-bike for $1,399 shipped, with $328 in free accessories along with your purchase. Down from its $2,099 price tag, today’s deal gives you back a combined $1,028 in savings and lands at a new all-time low, beating out Black Friday prices. Along with the e-bike you’ll also be receiving your free accessories package that includes both a front and rear rack, a cushion for the rear rack, and passenger foot pegs for the rear as well. Blix also offers an additional way to save by using the promo code RIDETOGETHER for $200 off when purchasing two e-bikes together.
The Blix Ultra e-bike is equipped with a 750W geared rear hub motor and your choice between one or two 48V batteries that pushes this e-bike up to max speeds of 20 to 28 MPH and travels a range of 40-80 miles, depending on your choice of battery setup. It offers five levels of pedal-assist with a 12-magnet cadence sensor, and a full digital display that relays real-time information such as battery level, odometer, speedometer, travel distance, pedal assist settings, and also supports Bluetooth connectivity to the Blix app for more comprehensive performance data. It also comes stocked with an integrated LED headlight and a pair of 26-inch fat tires for a smoother ride. Plus, with this deal you’ll also be getting the rear rack that can hold cargo and passengers alike with the added foot pegs should you be bringing another person along with you.
Anker PowerCore Reserve 60,000mAh Power Station returns to $110
The official Anker Amazon storefront is offering its PowerCore Reserve 60,000mAh Power Station for $109.99 shipped, after clipping the on-page $40 off coupon. Recently fetching $150, with an original $170 MSRP, this device rode its MSRP throughout 2023, with only a few discounts ever occurring – the biggest of which dropped costs to a $119 low. In the new year we saw a drop down to its new list price as the company switched from LiFePO4 batteries to typical models, followed by a drop in price to its new $105 low at the start of last month. Today’s deal comes in as a repeat 27% markdown off the going rate that lands at the second-lowest price we have tracked.
This power station has a 60,000mAh (192Wh) capacity that is tailored for personal use throughout your days rather than powering your camping sites. It sports a compact design of 4.59 inches by 4.59 inches by 8.17 inches and only weighs 5 pounds, making it easy to store and carry. You can even connect it to a solar panel for solar charging on-the-go, taking just 4 hours with a 60W input. It features a built-in retractable light with two brightness modes alongside an S.O.S. button to provide emergency lighting for safety during power outages or other emergency situations. You’ll also get four output ports to cover your personal devices: two USB-As and two USB-Cs. And for protection, you can even get a custom co2CREA Hard Case for $33.
Bosch Tronic 4000 6.5kW Electric Tankless Water Heater now $158
Amazon is offering the Bosch Thermotechnology Tronic 4000 6.5kW Electric Tankless Water Heater for $158.40 shipped. Down from $250, it spent the first half of 2023 keeping between its MSRP and $200. It wasn’t until Labor Day sales that we saw it drop further to its former $160 low, which we didn’t see beaten until March when its fell to the new $154 low. Today’s deal comes in as a 37% markdown off the going rate that gives you a solid $92 in savings and returns costs to the second-lowest price we have tracked. This 6.5kW under-sink tankless water heater is designed to provide an endless supply of instantaneous hot water to one or more commercial/residential sinks. It can be installed in a 360 degree orientation, with its 13-inch by 8.5-inch by 4.5-inch size making it easy to fit in tight under-counter spaces, and its low 0.55 GPM activation flow rate works perfectly for commercial low-flow faucets. It boasts a 96% thermal efficiency rate with no standby heat loss, saving you time, water, and money.
Spring e-bike deals!
- GoTrax Everest Electric Dirt Bike: $5,999 (Reg. $6,500)
- Super73 RX Electric Motorbike: $2,999 (Reg. $3,695)
- Juiced JetCurrent Pro Foldable e-bike (pre-order): $2,499 (Reg. $2,799)
- Juiced’s HyperScrambler 2: $1,999 (Reg. $3,499)
- Vanpowers UrbanGlide Ultra e-bike: $1,899 (Reg. $2,499)
- Aventon Aventure.2 All-Terrain e-bike with free extra battery: $1,799 ($2,499 value)
- Aventon Abound Cargo e-bike with $372 in free accessories: $1,799 (Reg. $2,199)
- Hover-1 Altai Pro R750 e-bike: $1,490 (Reg. $3,000)
- Electric Bike Co. Model J e-bike: $1,299 (Reg. $1,499)
- Lectric XPress 750 High-Step e-bike with extra battery (pre-order): $1,299 (Reg. $1,799)
- Lectric XPress 750 Step-Thru e-bike with extra battery (pre-order): $1,299 (Reg. $1,799)
- Vanpowers UrbanGlide Pro e-bike: $1,299 (Reg. $1,899)
- Velotric Nomad 1 e-bike: $1,299 (Reg. $1,799)
- Velotric Discover 1 e-bike: $1,099 (Reg. $1,599)
- Vanpowers UrbanGlide Standard e-bike: $999 (Reg. $1,299)
- Schwinn Ridgewood Electric Mountain Bike: $800 (Reg. $1,500)
- Schwinn Ingersoll Electric Hybrid Bike: $700 (Reg. $1,500)
Other new Green Deals landing this week
The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.
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