FTX tells investors bankruptcy is likely without fresh cash: Bloomberg

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.

 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: https://www.theblock.co/post/185068/ftx-tells-investors-bankruptcy-is-likely-without-fresh-cash-bloomberg?utm_source=rss&utm_medium=rss