As the many external collateral damages in the FTX affair are slowly being discovered, a company employee publishes a letter revealing details about the internal situation. Sam Bankman-Fried is said to have convinced his employees many times to place their own savings on FTX: “Sam has ruined the lives of many current and former employees of FTX”.
Many FTX employees hit hard
In a letter shared on Twitter overnight, relayed in particular by the serious Chinese reporter Wu Blockchain, an FTX employee spoke on the case that is currently affecting our ecosystem. He reveals the extent of the internal situation, including for many employees of the company, and details the recent actions of Sam Bankman-Fried.
A self-reported statement from an FTX employee, which we confirmed to be true. pic.twitter.com/sZVUoRc4H8
—Wu Blockchain (@WuBlockchain) November 11, 2022
He begins his letter as follows: “Sam has ruined the lives of many current and former FTX employees.” Indeed, it reveals how much faith FTX employees had in their boss : “They were all fighting for Sam before they found out what was going on on Twitter.”
According to him, Sam Bankman-Fried was promoting – internally and externally – his own platform as “a trusted bank”. As a result, many employees hold all of their savings on FTXespecially since “bounties were regularly distributed in FTX.com shares and FTT tokens”.
In October 2021, during the buyout of Binance shares by FTX, Sam Bankman-Fried offered the possibility to his employees to invest for the very first time in the company. Specifically, it offered a 50% discount on the purchase of stock, up to $250,000. An operation that would “strongly acclaimed” internally.
The employee reports that Sam Bankman-Fried described this as “an opportunity to make a net profit of 100% and a x4-5 within a few years”. allegations which were however refuted by another FTX employeewho explains that he did not hear about this speech.
Still, according to the letter:
“The majority of people invested more than they should have. Everyone believed in Sam. Many have now lost all their life savings because they believed Sam and FTX were a safe bet and they believed him. »
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Sam Bankman-Fried’s double game
The second part of the letter reveals other actions of Sam Bankman-Fried. At the start of this bear market, many companies announced that they were parting with some of their employees to ensure their survival. Conversely, SBF maintained that FTX continued to recruit, experiencing no difficulties.
Internally, the reality seemed to be quite different. the day after an SBF talk on CNBC to praise the good situation of FTX and promote the recruitments in progress, this one proceeded the dismissal of around twenty employees. Here are the highlighted details:
“He more or less blamed the employees for not being culturally appropriate [de l’entreprise]. “Not being culturally appropriate” was a recurring phrase [chez Sam Bankman-Fried]. Employees who disagreed with Sam were quickly fired. »
For information, as mentioned above, a second letter has been published by another FTX employee to elaborate on the premiere. The parties being questioned by this second individual have not been mentioned in this article.
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Lilian Aliaga
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