Sam Bankman-Fried, head of one of the world’s largest crypto exchanges, FTX, has said that his company still has a “few billion” on hand to help struggling digital asset firms find their feet amid the latest market downturn.
Sam Bankman-Fried Still Has a Few Billion to Spare
In the last month, Sam Bankman-Fried’s firms provided a $250 million bailout fund for the embattled crypto lender, BlockFi, and a $200 million lender facility in cash and stablecoins to Voyager Digital.
After providing hundreds of millions to struggling crypto firms, the FTX chief said in a recent interview that his company still has a “few billion” to support the industry.
Although FTX has drawn from its $2 billion venture capital fund FTX Ventures announced in January, Bankman-Fried says that the fund still has enough liquidity to do a $2 billion deal if necessary.
The Worst of the Crypto Winter Is Over
While Bankman-Fried notes that FTX is ready to help struggling firms in the crypto industry, he believes that the worst of the liquidity crunch has likely passed.
The collapse of the Terra stablecoin and surrounding ecosystem in an already struggling crypto space sparked an even bigger loss. Since then, leading crypto firms like Three Arrows Capital and Voyager Digital have filed for bankruptcy.
On The Flipside
- FTX reportedly walked away from a deal to acquire the Celsius Network after discovering a $2 billion deficit in its balance sheet.
Why You Should Care
Bankman-Fried says the provision of help to struggling crypto firms is a move to prevent further destabilization of the digital asset industry if they collapse.
Detailed insight on the BlockFi bailout fund is covered below;
Crypto Lending Platform BlockFi Gets $250 Million Bailout Fund from FTX
Read about the possible acquisition of BlockFi by FTX in;
Crypto exchange FTX to purchase BlockFi lending protocol for $25 Million
The Voyager crisis is covered in;
Crypto Lender Voyager Digital Files for Bankruptcy