FTX CEO Says without fresh funds, FTX can’t survive

Reportedly FTX boss SBF kept the FTX officials in the dark over his Almeda Research funding with the use of FTX’ users.

Alameda Research is a quantitative trading firm, which was founded by Sam Bankman-Fried (SBF) in September 2017. Reportedly Alameda faced huge losses in its multiple deals and the biggest loss deal of this firm was a $500 million loan contract with the defunct cryptocurrency lender Voyager Digital. 

On 10 November, Reuters reported that SBF used the reserved funds of the FTX exchange to support Alameda Research financially.

FTX CEO transferred $4 billion in FTX funds secured by assets that include FTT, Robinhood shares & also users fund. 

This report was covered by Reuters on behalf of information shared by two people, who are close to this matter. However, a report by Coindesk noted that a large portion of Alameda’s $14.6 billion assets were held in FTT, which means the FTX exchange used its self-created token to show the reserves. 

FTX needs funding support

Initially, Binance crypto exchange was planning to support & help FTX exchange to get out of the liquidity crisis but later Binance refused to support it. Binance’s CEO said that the situation is now out of control & also confirmed that the FTX exchange mismanaged the user’s fund.

A popular crypto personality Cobie tweeted that FTX CEO talked about this situation and said that it is not possible to bring FTX back in line without fresh funding.

At present, Tron blockchain founder Justin Sun is working with FTX exchange to resume trading all the crypto assets which are supported on Tron blockchain.

Read also: Here is Why FTX Crypto Exchange failed?