FTX former CEO Sam Bankman-Fried plans to raise fresh capital to make customers whole after filing for Chapter 11 bankruptcy on Friday. Sam Bankman-Fried asserts his goal is to raise liquidity, make customers whole, and restart. He also disclosed the current liquid, semi-liquid, and illiquid assets at crypto exchange FTX. However, FTX may have over a million in creditors and institutional investors are pulling out of FTX.
Sam Bankman-Fried disclosed that beleaguered crypto exchange FTX plans to raise liquidity and make customers whole. Moreover, he believes FTX has -$8 billion liquid, $5.5 billion semi-liquid, and $3.5 billion illiquid assets.
FTX was handling almost $10 billion per day of volume and transfers in billions. However, the leverage was more than he realized and the market crash cause liquidity crush.
Sam Bankman-Fried thinks he may be able to raise fundings for investors. However, he also agreed with his failure and that customers may not get more than what’s already there.
Furthermore, he believes his current goals are clean up and focus on transparency, as well as making customers whole. He plans to put customers first before investors.
Several entities are now reporting withdrawal issues and bankruptcy as the FTX contagion spreads. Crypto lender Blockfi plans to file for bankrupcy as FTX collapses. FTX Bahamas seeks Chapter 15 bankruptcy protection and FTX Australia’s license has been suspended by The Australian Securities & Investments Commission.
At the time of writing, FTX Token (FTT) price is trading at $1.74, up almost 16% in the last 24 hours. However, the token dumped over 90% in a week amid the FTX crisis.
