To Avoid Bankruptcy, FTX Seeks $9.4B In Investment

In the aftermath of the failure of Binance’s acquisition of crypto trading rival FTX, FTX’s chief executive officer, Sam Bankman-Fried, has began searching for fresh big investments to preserve the firm from bankruptcy.

According to an exclusive story published by Reuters on Thursday, November 10th, citing a person familiar with the situation, Bankman-Fried intends to put together a “rescue package” of up to $9.4 billion for the cryptocurrency exchange.

According to the source, Bankman-Fried is in discussions with a number of investors to initiate the expansion of this package.

The CEO has previously discussed a $1 billion investment from the cryptocurrency network Tron, as well as $1 billion from the cryptocurrency exchange OKX, $1 billion from the cryptocurrency company Tether, and $2 billion from a number of other investment funds.

Until now, Bankman-Fried has resisted calls to file for bankruptcy, according to a Reuters source, as he attempts to raise the funds necessary to keep the cryptocurrency exchange viable.

The last few days have been tumultuous for FTX with the announcement and subsequent cancellation of Binance’s purchase of the exchange.

Bankman-Fried sent a note to clients through Twitter on Thursday, noting that the business is using this week to increase liquidity.

“Every penny of that — and of the existing collateral — will go straight to users, unless or until we’ve done right by them,” he said in the Twitter thread.

On Thursday, the CEO of FTX was accused of lending his trading business Alameda Research billions of dollars from FTX, including over $8 billion in client cash. This week, Bankman-Fried informed an investor that Alameda owes FTX around $10 billion and described his choice to utilise client cash to help Alameda as an error of judgement.