FTX Founder Sam Bankman-Fried Reveals Fear of ‘Bank Run’ Prior to November Collapse: Report

During his ongoing fraud trial against the US government, former FTX CEO Sam Bankman-Fried (SBF) testified about his concerns following a tweet by Binance’s Changpeng Zhao (CZ) stating the liquidation of all FTX Token (FTT). 

SBF expressed worry about a potential bank run, leading to a surge in customer withdrawals, totaling $1 billion in one day. Despite attempts to reassure customers through tweets, withdrawals escalated dramatically, reaching $4 billion on November 7, indicating a potential liquidity crisis. SBF emphasized that FTX did not invest customer assets and that he believed the exchange was financially stable. This testimony came after his colleagues provided damning evidence against him, prompting SBF’s decision to take the witness stand.

Clever Robot News Desk 31^st October 2023