Tether CTO Affirms There Are No Plans To Save FTX

On November 10, Tether’s CTO, Paolo Ardoino, confirmed the company has “no plans to invest or lend money to FTX/Alameda.”

Ardoino made his remarks in response to a Reuters report from Nov. 10 that said the $9.4 billion gap at FTX had FTX CEO Sam Bankman-Fried reaching out to many businesses for funding to keep the exchange solvent.

Tether, the cryptocurrency exchange OKX, and the venture capital firm Sequoia Capital are among the businesses that Bankman-Fried is said to have approached for funding. It is said that he has requested at least $1 billion from each of the organizations.

The sentiment expressed in a blog post by Tether on November 9 that assured the community that it has no exposure to Alameda or FTX appears to be reflected in the CTO’s answer.

In order to cooperate with law authorities, the stablecoin issuer reportedly frozen 46,360,701 USDT held by FTX in its Tron blockchain wallet on November 10.

OKX or Sequoia Capital are thinking about supporting the troubled exchange

To aid with FTX’s liquidity concerns, Bankman-Fried requested up to $4 billion from the exchange, although Lennix Lai, director of financial markets at OKX, earlier told Reuters on Nov. 9 that the company had not yet decided whether or not to support FTX.

Sequoia canceled out its almost $214 million worth of investments in FTX on November 10 and declared them a complete loss, claiming that FTX’s liquidity concerns “posed a solvency risk” but that it wouldn’t significantly affect the company’s stock price.

According to two unidentified individuals, FTX apparently also approached the cryptocurrency exchange Kraken, as reported by Axios on Nov. 10; however, it is unclear whether a transaction was ultimately made between the two companies.

On August 3, 2022, the DCCPA bill was formally introduced into the US Congress.

If the DCCPA becomes law, it would extend the regulatory authority of the Commodity Futures Trading Commission (CFTC), one of the two U.S. market regulators, over the industry.

To become law, the measure still needs to be approved by the US Senate and House of Representatives and signed by President Joe Biden.

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