After filing for Chapter 11 bankruptcy Friday, former CEO of FTX Sam Bankman-Fried plans on raising new capital to make customers whole. Sam Bankman-Fried stated that his goal was to “raise liquidity and make customers whole,” and also disclosed the liquid, semi-liquid and illiquid assets of crypto exchange FTX. However, FTX may have exceeded its limit.
CoinGape’s first article, Sam Bankman-Fried Describes Current Situation at FTX after Bankruptcy, appeared first on CoinGape.

  

After filing for Chapter 11 bankruptcy Friday, former CEO of FTX Sam Bankman-Fried plans on raising new capital to make customers whole. Sam Bankman-Fried stated that his goal was to “raise liquidity”, make customers whole, restart, and start over.” He also disclosed the liquid, semi-liquid and illiquid assets of crypto exchange FTX. However, FTX may be insolvent and institutional investors are leaving FTX.
FTX Sam Bankman-Fried Hopes To Raise Liquidity
Sam Bankman-Fried, in his latest tweet on November 16, revealed that the beleaguered crypto exchange FTX plans raise liquidity and make customers whole. He believes that FTX has -$8billion liquid, $5.5billion semi-liquid and $3.5billion illiquid assets. This will be the last tweet in this thread.
“I know you’ve seen this before, but here’s the current situation, roughly speaking. [LOTS OF CAVEATS ETC.] Maybe the $9b illiquid M2M doesn’t have the same value as $9b (+$1b) It was worth $18b a month ago; +$10b gross.”
In tweets, SBF stated that FTX handled almost $10 billion per day in volume and transfers in billions. The leverage was greater than he realized, and the market crash led to a liquidity crunch. He plans to “raise liquidity”, make customers whole, then restart.
Sam Bankman-Fried believes he might be able raise funding from investors. He also acknowledged his failure and said that customers may not receive more than they have. FTX investors Softbank and Sequoia have been marking their investments as “zero” on the crypto exchange.
Trending Stories

He believes that his current goals include focusing on transparency and cleaning up the company. He intends to put customers before investors.
Zhu Su, co-founder of Three Arrows Capital, suggested that these “assets” be auctioned in a Dutch auction. He suggested starting at your criminal mark price and seeing where buyers come up.
Rapid Spreading of FTX Contagion
As the FTX contagion spreads, several entities are reporting withdrawal problems and bankruptcy. BlockFi, a crypto lender, plans to file for bankruptcy when FTX crashes. FTX Bahamas requests Chapter 15 bankruptcy protection, and FTX Australia’s licence has been suspended by the Australian Securities & Investments Commission.
The FTX Token price (FTT) is $1.74 at the time of writing. This represents an almost 16% increase in the last 24 hours. Despite this, the token fell by more than 90% in the last week of the FTX crisis.

About the author
Disclaimer

The content presented may contain the author’s personal opinion and may not reflect current market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

Crypto Stories
View all