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July 7, 2022

Sam Bankman-Fried: FTX Has “Few Billions” to Help Crypto Firms

Crypto derivatives exchange FTX CEO Sam Bankman-Fried (SBF) stated Wednesday that his organization still has a “few billion dollars” to help faltering crypto companies that might further disrupt the market, according to Reuters, which first reported the statement. The worst of the liquidity constraint, according to the crypto entrepreneur, has largely passed.

There is no question that SBF is a major participant in the cryptocurrency market. As a result of the present market recession, which has resulted in the disappearance of billions of dollars from the total market capitalization, he has provided financial assistance to several companies under strain.

The number of firms interested in working with us is increasing. Although some smaller crypto exchanges may still collapse, “these enterprises are typically not in severe positions,” Bankman-Fried noted in an interview. “Other major shoes that have to drop” are no longer relevant, he said.

As the CEO of FTX has previously said, more crypto businesses are on the verge of going out of business, stressing that others are “secretly insolvent.” Bankman-Fried, on the other hand, emphasized that his business still has finances to support suffering companies, secure customers’ investments, and prevent the spread of disease across the sector.

Revolving credit facility loans from SBF and FTX have been issued to various unsuccessful projects and organizations, including BlockFi, a crypto lending firm that recently lost money owing to its client’s failure to fulfill margin calls.

Reports this week said that BlockFi, BlockFi’s revolving credit facility, and an option to acquire the company for $240 million were inked earlier this week by the American branch of the company.

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SBF also offered assistance to Voyager Digital, a crypto brokerage in New Jersey that had been affected by the bankruptcy of 3AC and was now facing large losses as a result of market instability.

To ensure the safety of its clients’ funds, the brokerage has put a halt to withdrawals. It has already been announced that the company has filed for chapter 11 bankruptcy protection in the Southern District of New York.