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FTX CEO SamBankman-Fried has asked investors for $8 billion in emergency funding to cover the shortfall caused by the massive withdrawal of assets from the exchange in recent days.
According to the Wall Street Journal (WSJ)Citing a source familiar with the situation, yesterday Sam Bankman-Fried approached investors with a request for financing. To repay obligations to users and investors, the head of the exchange is ready to use personal capital.
During a telephone conversation with investorsFTX's CEO said a campaign to persuade investors to withdraw their assets from the platform was partly to blame for the exchange's problems. Bankman-Fried outlined to investors ways to resolve FTX's financial problems.
However, he admitted that FTX will not be able to“ensure the withdrawal of assets for all users, since its collateral has become worthless and will not be able to cover deposits,” the source claims. The exchange said it had suspended services for creating new deposits.
“FTX is currently unable to process withdrawals. We strongly recommend that you do not make any deposits,” reads the official FTX blog.
According to Bloomberg, Bankman-Friedtold investors that without an infusion of capital, the company would have to file for bankruptcy. The situation around FTX became even more tense after Binance refused to purchase the exchange, which was in a pre-default state.
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