In an interview with Bloomberg, FTX CEO Sam Bankman-Fried tells host David Rubenstein that his firm’s efforts to shore up ailing crypto companies, including money spent on embattled crypto broker Voyager Digital, have not all been profitable.
“Mixed, is basically the answer. I think some are going to turn out to be profitable, some won’t be. With Voyager, there’s $70 million that we put in and I’m not sure we’re ever seeing it again.
We had to make snap judgment calls and we made them such that if things turned out well, they’d be good investments. If they turned out badly, they’d be bad investments, but we sort of limited the amount we could lose from it.”
When asked how FTX came up with the funds to provide the loans, the billionaire says that the company keeps its corporate cash in dollars and has raised several billion dollars throughout the last couple of years.
FTX is a profitable business. The exchange also made some acquisitions, which partially balances that out, but we had some cash left. And with the BlockFi deal, for instance, Sam Bankman-Fried thinks that was on FTX.US’s balance sheet.
In early summer, the BlockFi lending platform agreed to a $400 million revolving credit facility with FTX.US and an option for FTX to acquire BlockFi for a variable price of up to $240 million.
The CEO explained what motivates FTX to help crypto companies in need, which he thinks is right for the industry. But depending on that doing as much as possible to save the industry. The higher goal is to try to support positions rather than maximize these trades, according to Sam:
“Your goal on this is not to make a fortune. Your goal is to do okay deals and for us not to get our faces ripped off.”
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.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Polymarket user identified only as "wallet mobile" has just made an astonishing bet of $10…
Binance CEO Richard Teng stated that Western companies will benefit most due to regulatory influence.
The Cyprus Securities and Exchange Commission announced that the Cypriot Investment Firm (CIF) FTX license…
The VanEck Pyth ETN, backed by assets stored in cold storage with Bank Frick, has…
Swift, UBS Asset Management, and Chainlink have completed a proof-of-concept that would settle tokenized fund…
Abu Dhabi, United Arab Emirates, 5th November 2024, Chainwire
This website uses cookies.