Tuesday, December 6, 2022
HomeCryptoSam Bankman-Fried Reveals FTX's Impressive Cash Reserves

Sam Bankman-Fried Reveals FTX’s Impressive Cash Reserves

Sam Bankman-Fried could step in to offer more bailouts to struggling cryptocurrency firms if the market turmoil continues.

During an interview with Reuters, the CEO of FTX and founder of Alameda Research said his company still has “a few billionof reserves to help struggling crypto businesses amid this year’s bear market. The entrepreneur also said he believes the worst of the liquidity crises seen in the sector is over.

Bankman-Fried reportedly said several cryptocurrency firms contacted FTX and himself after encountering liquidity issues. He pointed out that while many of these companies are not in big trouble, he still expects some companies may encounter major problems.

Bankman-Fried’s comments come after news broke that Voyager Digital, which last month received a $200 million loan and 15,000 bitcoins from Alameda, has voluntarily filed for bankruptcy. Voyager, which had exposure to hedge fund Three Arrows Capital of more than $650 million, has halted all trading and withdrawals and will undergo significant restructuring during its bankruptcy proceedings.

Bankman-Fried, FTX and Alameda have gained wide notoriety for their willingness to “replenish“cryptocurrency companies facing liquidity or solvency crises in recent weeks. After Alameda’s Voyager loan, it was announced last week that the US arm of the exchange had reached an agreement with BlockFi that included the offer of a $400 million credit facility and an option to acquire. of the company for a maximum amount of $240 million based on certain performance parameters.

The aim of these measures, according to Sam Bankman-Fried, is to stem the contagion in the sector and to protect the assets of the customers. “Consumer trust that things will work as advertised is incredibly important and if it’s broken it’s incredibly hard to get it back.“, did he declare.

Sam Bankman-Fried also said he and his company have enough cash to complete a transaction of at least $2 billion, but he indicated that it was not his preference. “FTX has shareholders and we have a duty to do reasonable things for them and I certainly feel more comfortable incinerating my own money“, did he declare.

Before the Three Arrows debacle, Bankman-Fried made headlines in May when he took a 7.6% personal stake in retail app company Robinhood. His net worth was estimated at $24 billion at the end of 2021, but it plummeted after market turmoil.

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