FTX Employee's Account: We Have Lost a Lifetime of Savings

Source: @AutismCapital

Compiled by: Wu Says Blockchain

A screenshot of a self-narration from an FTX employee has spread in the community, and we have confirmed most of its authenticity. The article has been compiled.

The full text is as follows:

I am a source close to the FTX situation. SBF ruined the lives of many of his current and former employees. Everyone at FTX is shocked and disappointed. They were all fighting for SBF until they found out what was happening on Twitter. SBF's inner circle is the only group that knows what is going on.

Many employees' life savings were in FTX. SBF promoted FTX as a trustworthy bank both internally and externally. Bonuses for FTX employees often included FTX stock and FTT. Most employees kept their funds on the platform. They either deposited their salaries directly or transferred them to FTX after receiving their paychecks. Employees actively developed products that could facilitate automatic remittances to FTX. This was promoted both internally and externally.

In October 2021, FTX reclaimed shares from Binance, which Sam and others internally touted as a huge victory. Sam and Ramnik gave employees the opportunity to invest in FTX at a 50% discount for the first time. This limit was set at $250,000, which could be matched with an investment of up to $250,000 at market price in FTX US. This would bring the total to $500,000. They heavily marketed this deal to all employees.

From senior leadership to customer support, most people saw this as a great opportunity. Stocks had to be earned by working at FTX, and no employee received equity upon hiring. Employees had two weeks to remit to FTX before Thanksgiving, and FTX persistently followed up on this matter. Sam and others presented this as an opportunity to make 100% profit overnight and earn 4-5 times in a few years.

Most people's investments exceeded reasonable levels. Everyone believed in SBF. Many have now lost their life savings because they thought Sam and FTX were a safe bet, and they trusted him. Employees are now worried that their money has all gone to Alameda.

On June 6, 2022, Sam claimed he was hiring more people while others were being laid off. He discussed this on CNBC. However, SAM laid off more than 20 people the next day. Employees found out they were fired when they could no longer speak in Slack chats. They were removed one by one. Sam did not directly fire employees. He simply posted a message within hours of the layoffs on internal Slack, more or less blaming employees for not fitting the culture.

Nishad's long-term girlfriend Claire was immediately promoted to HR director. She had the authority to fire anyone she deemed "not a cultural fit" and disagreed with Sam.

Only SAM's inner circle knows what is happening, yes, that's right. (Follow-up: https://twitter.com/AutismCapital/status/1590852094894149632)

The previous letter is mostly correct, but I want to correct some details:

Bonuses are usually paid in FTX equity or cash. Some early employees received FTT when the Token was first created, but to my knowledge, they have not received any since.

Indeed, you could invest up to $250,000 at a 50% discount. You could also invest in FTX US at market price, but there was no $250,000 cap. It was not heavily marketed to employees.

The layoff part is true. There were also many other smaller invisible layoffs not mentioned in your post. The information about Claire may be true, but I cannot confirm it in any way.

I personally doubt that anyone other than Sam, Nishad, Gary, and Caroline truly understands the full scope of what is happening. You might be able to piece together a story from the comparison of profit amounts to expenditure/investment amounts, but overall, I believe no one knows what is happening behind the scenes that led to this discrepancy. I am a senior employee, and I do not know. SAM has a multifunctional apartment in the Bahamas. Nishad and Claire share a room in that apartment, while other rooms are occupied by other FTX employees.

There may be two internal groups:

1) Those who know what is happening: Sam, Caroline, Nishad, Gary

I firmly believe no one else is part of this group. I have multiple other employees who have confirmed this to me. I have also discussed financial issues in detail with members of the FTX Ventures team (Amy, Ramnik, and former Alameda traders), and I believe this is not part of their understanding.

2) Those who knew the situation before the public was informed:

Sam, Caroline, Gary, Nishad, Ramnik, Constance, Claire, Ryne, Zach, Amy, and perhaps a few others.