Sam Bankman-Fried, head of one of the largest cryptocurrency exchanges, FTX, said he and his company still have a “few billion” to support struggling crypto companies that could further destabilize the digital asset industry if not helped, adding that the worst of the liquidity crunch has likely passed.
Bankman-Fried who lives in the Bahamas where FTX is based has become crypto’s hero in recent weeks, sending hope to the industry. Bitcoin, the largest cryptocurrency by market value is down around 70% from its all-time November high of nearly $69,000.
“We’re starting to get a few more companies reaching out to us,” Bankman-Fried said in an interview. Those firms are generally not in dire situations, though some smaller crypto exchanges may still fail, he said, adding that the industry has moved beyond “other big shoes that have to drop.”
Bankman-Fried’s crypto-trading firm, Alameda Research, gave crypto-lender Voyager Digital a $200 million cash and stablecoin revolving credit facility, and a facility of bitcoin, as the company faced losses from exposure to crypto hedge fund Three Arrows Capital. On Wednesday, Voyager filed for bankruptcy.
