FTX Still Has a “Few Billion” to Support Struggling Crypto Firms

Sam Bankman-Fried (SBF), the founder and CEO of leading crypto derivatives exchange FTX, said Wednesday that his company still has a “few billion” dollars to save struggling crypto companies that could further destabilize the industry, Reuters reported.  The crypto billionaire also noted that the worst of the liquidity crunch has likely passed. 

FTX Still Has Billions to Spare

SBF is undoubtedly one of the key players in the crypto industry. He has supported many firms under duress following the current market slump that erased trillions of dollars from the entire market capitalization, leaving investors scratching their heads as they watch their investments vanish into thin air. 

“We’re starting to get a few more companies reaching out to us. These firms are generally not in dire situations, though some smaller crypto exchanges may still fail,” SBF said in an interview. He added that the industry has moved beyond “other big shoes that have to drop.” 

The FTX chief had earlier warned that more crypto companies are headed towards bankruptcy, noting that some firms are already “secretly insolvent.” However, SBF highlighted that his company still has funds to help ailing firms, protect consumers’ assets, and stop contagion from sprouting throughout the entire industry. 

FTX Becomes Crypto White Knight 

SBF and FTX have offered revolving credit facility loans to several failed projects and companies, including BlockFi, a crypto lending company that recently suffered losses due to its client’s inability to honor margin calls. 

Earlier this week, Coinfomania reported that FTX US, the American division of FTX, signed an agreement with BlockFi, which entails an option to buy out the firm for $240 million and a $400 million revolving credit facility. 

SBF also extended help to New Jersey’s crypto brokerage firm Voyager Digital, which was exposed to 3AC’s insolvency and is currently suffering massive losses due to market volatility. 

The brokerage company recently paused withdrawals to seek strategic alternatives focused on protecting customers’ assets. The firm has now filed for chapter 11 bankruptcy in the U.S. Bankruptcy Court of the Southern District of New York.