SBF Says The Company Will File For Bankruptcy Because Of The Shortage Of Up To $8 Billion

After Binance rejected the acquisition, SBF told FTX.com investors on Wednesday that without the money, the company would have to file for bankruptcy. Currently, the exchange faces a shortfall of up to $8 billion.

As Bloomberg reports from an unnamed source, the owner of SBF has informed investors that his crypto exchange FTX faces a shortfall of up to $8 billion and needs $4 billion to maintain. FTX is trying to raise rescue financing in the form of debt, equity, or a combination of the two, the person said.

On November 9, after discovering uncontrollable financial vulnerabilities, Binance decided to reject the acquisition with FTX. According to SBF, the company is facing the risk of having to file for bankruptcy without investors.

If this turns out to be true, then FTX will be the next name to appear in the list of crypto companies that went bankrupt in the last quarter such as Celsius, Voyager, BlockFi, etc.

SBF’s admission of his company’s deep financial losses and limited options reflects the uncertain fate of FTX and its customers. If you have to file for bankruptcy, it means that FTX’s customers will have to suffer a loss.

As updated in an earlier Coincu News article, in addition to the risk of bankruptcy, the exchange is also facing investigations from two law enforcement agencies SEC and DOJ to uncover the breach involved client funds, as well as their relationships with other parts of SBF’s crypto empire, including trading firm Alameda Research.

As a major exchange second only to Binance, the crisis from FTX has had a wide impact on the entire market. Bitcoin at one point dropped below $16,000, its lowest level in two years, following the announcement of Binance.

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