FTX founder and CEO Sam Bankman-Fried told investors that the crypto exchange would need to file for bankruptcy without a cash injection, Bloomberg News reported, citing a person with direct knowledge of the situation.
Before Binance announced that it would drop its bid to take over the rival exchange, Bankman-Fried had told the investors that it faced a shortfall of up to $8 billion, Bloomberg cited the person as saying.
FTX was attempting to raise capital in the form of debt, equity, or a combination of both.
Bankman-Fried had told investors in a conference call Wednesday afternoon that Binance would not walk away from the deal just about an hour before it finally backed out, the report said.
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Source: https://www.theblock.co/post/185068/ftx-tells-investors-bankruptcy-is-likely-without-fresh-cash-bloomberg?utm_source=rss&utm_medium=rss