TL:DR
•FTX is on the brink of bankruptcy unless it receives an injection of cash, CEO Sam Bankman-Fried reportedly told investors today.
• Binance planned to purchase FTX amid a liquidity crisis, but said today that it would not follow through with the deal.
• Cryptocurrency exchange FTX may be forced to declare bankruptcy if it does not receive an infusion of fresh capital, founder and CEO Sam Bankman-Fried reportedly told investors on Wednesday.
FTX In Trouble
Cryptocurrency exchange FTX may be forced to declare bankruptcy if it does not receive an infusion of fresh capital, founder and CEO Sam Bankman-Fried reportedly told investors on Wednesday.
According to a report from The Block, Bankman-Fried said that the company is on the brink of bankruptcy and needs to raise $10 billion in order to stay afloat. He also said that cryptocurrency exchange Binance had planned to purchase FTX amid a liquidity crisis, but said today that it would not follow through with the deal.
FTX buries itself
FTX has been struggling in recent months due to a number of factors, including low trading volume and a crackdown by US regulators. Moves made by Bankman-Fried into joining US regulations also damaged the reputation of himself and his company as well. It was this particular move that caused CZ to strike out against FTX and reveal a sale of all of the FTT tokens Binance held.
The news of FTX’s impending bankruptcy will come as a shock to many in the cryptocurrency community, as the exchange has been one of the most popular exchanges in recent months. However, it appears that the company has been struggling behind the scenes for some time.
What’s next for FTX?
It is unclear what will happen to FTX if it does declare bankruptcy. It is possible that another exchange could purchase the company, but it is also possible that the company will be forced to shut down entirely. In either case, it is likely that there will be significant disruptions for FTX users in the near future.
