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And More July 6, 2022 2 mins read

FTX’s CEO Says He And His Firm Still Have a “Few Billion” To Support Crypto Industry

And More ı By Rochdi Rais

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Sam Bankman-Fried CEO of FTX - Source: CoinTelegraph

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.

Additionally, in June, FTX gave U.S. cryptocurrency lender BlockFi a $250 million revolving credit facility and on Friday announced a deal giving FTX the right to purchase it based on certain performance triggers.

 

“Having trust with consumers that things will work as advertised is incredibly important and if broken is incredibly hard to get back,” he said.

“It does get increasingly expensive with each one of these,” Bankman-Fried said, adding that the firm still had enough cash on hand to do a $2 billion deal if necessary.

“If all that mattered was one single event, we could get above a couple billion,” he said, stressing that isn’t his preference.

“FTX has shareholders and we have a duty to do reasonable things by them and I certainly feel more comfortable incinerating my own money,” he concluded.

 

 

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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