FTX seeking $9.4 billion to avoid bankruptcy
A Reuters exclusive report Thursday (Nov. 10) said Bankman-Fried was aiming to put in place a “rescue package” of up to $9.4 billion for the cryptocurrency exchange, citing a source familiar with the matter.
According to the source, Bankman-Fried is in talks with several investors to start developing this package.
The CEO is already discussing a $1 billion investment from the crypto network tronas well as $1 billion from the cryptocurrency exchange OKX$1 billion from the cryptocurrency company Attached and $2 billion from various other investment funds.
Representatives for FTX did not immediately respond to PYMNTS’ emailed request for comment.
Bankman-Fried has so far resisted pressure to file for bankruptcy, the Reuters source noted, as it scrambles to raise the money needed to keep the crypto exchange afloat.
Bankman-Fried published a statement to customers on Thursday via Twitter, indicating that the company is taking the time this week to raise cash.
“Every penny of this – and existing warranties – will go directly to users, unless or until we’ve done the right thing with them,” he said in the Twitter thread.
Just Thursday, the FTX CEO came under fire for allegedly loaning his trading company Alameda Research billions of dollars from FTX, including more than $8 billion in client funds. Bankman-Fried told an investor this week that Alameda owed about $10 billion to FTX and called its decision to use client funds to back Alameda a lack of judgment.
We are always looking for partnership opportunities with innovators and disruptors.