FTX Has At Least $2B For Additional Bailouts, According To SBF

FTX Has At Least $2B For Additional Bailouts

If the market turbulence continues, FTX CEO Sam Bankman-Fried could intervene and provide more bailouts to distressed crypto companies.

The founder of Alameda Research and CEO of FTX indicated in a Reuters interview on Wednesday that his organization still has “a few billion” in reserves to help struggling crypto companies throughout this year’s down market. The billionaire businessman said that he believed the biggest liquidity issues the sector has ever experienced were behind them.

According to reports, Bankman-Fried said that numerous cryptocurrency companies had contacted FTX and himself after experiencing liquidity problems. While many of those businesses are not in serious financial trouble, he noted, he still believes some smaller exchanges may go under.

The announcement that Voyager Digital, which last month obtained a loan from Alameda for $200 million USDC and 15,000 Bitcoin, has voluntarily filed for Chapter 11 bankruptcy, comes shortly after Bankman-remarks. Fried’s Voyager, which has more than $650 million in exposure to the struggling hedge fund Three Arrows Capital, has halted all trading and withdrawals and will undergo a severe reorganization throughout the course of its bankruptcy proceedings.

The willingness of Bankman-Fried, FTX, and Alameda to rescue out cryptocurrency businesses in recent weeks experiencing liquidity or solvency issues has earned them widespread attention. Following the Voyager loan from Alameda, it was revealed last week that the exchange’s American division had reached an agreement with BlockFi that included the offer of a $400 million credit facility and an option to purchase the company for up to $240 million based on specific performance measures.

“Having trust with consumers that things will work as advertised is incredibly important and if broken is incredibly hard to get back,” he said.

Bankman-Fried said that he and his business have enough cash on hand to complete a purchase for at least $2 billion but claimed that he preferred not to.

“FTX has shareholders and we have a duty to do reasonable things by them and I certainly feel more comfortable incinerating my own money,” he said.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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