The FTX boss is trying to raise 94 billion from
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The FTX boss is trying to raise $9.4 billion from investors to save the crypto exchange from bankruptcy

Sam Bankman-Fried, head of the FTX cryptocurrency exchange, is now busy looking for ways to avoid bankruptcy and close the arrears created by investor outflows. Reuters sources say Bankman-Fried is looking to raise about $9.4 billion from investors and competitors, despite previously reporting a financial gap of up to $8 billion.

    Credit: REUTERS/Dado Ruvic

Credit: REUTERS/Dado Ruvic

Bankman-Fried was discussing the possibility of raising $1 billion with Justin Sun, the founder of crypto platform Tron, with rival crypto exchange OKX and stablecoin platform Tether, sources said.

Tether CTO Paolo Ardoino stated on Twitter that he had done so “There were no plans to invest or lend any FTX assets.” The day before, on Thursday, OKX told Reuters that Bankman-Fried approached the company this week to help close $7 billion in debt. “It’s too much for us” – said Lennix Lai, director of financial markets at OKX.

In addition to all of FTX’s problems, the Bahamas Securities Commission has frozen the assets of FTX Digital Markets and related parties. FTX Digital Markets Ltd is a subsidiary of FTX licensed in the Bahamas.

Bankman-Fried previously said on Twitter and in a memo to staffers seen by Reuters that he is in talks with “next to the players” in the crypto space. He also said his company, Alameda Research, is handling the trade.

FTX set the stage for the current troubles a few months ago when Alameda moved at least $4 billion, including customer funds, to prop up the Bankman Freed firm after a string of losses, the sources said.

The Wall Street Journal claims Bankman-Fried told investors about Alameda’s debt to FTX of around $10 billion, according to the newspaper FTX lent more than half of its clients’ funds to Alameda.

It has also been revealed that the US Securities and Exchange Commission (SEC) has launched an investigation into FTX’s activities related to client fund transactions and cryptocurrency lending activities.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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