FTX CEO Sam Bankman-Fried spoke in a interview with Reuters, where he stated that his company has more than $2 billion to use for deals in the crypto industry. He stated that the worst phase of the liquidity crisis is probably over and that he still has money to act as a last resort for the financially struggling companies. Bankman-Fried stated that unstable companies can cause further instability in the crypto industry.
FTX CEO Bankman-Fried has become a savior for the sinking ships
Over the past few weeks, we’ve witnessed Celsius’ withdrawals, corporate layoffs, Voyager Digital’s bankruptcy, and much more. These moments were equally difficult for investors and businesses alike.
Out of its prime, Bankman-Fried has emerged as a lifesaver for various crypto platforms. He has lent a hand to several unstable companies and is still trying.
“We are getting more and more companies contacting us.” “Those companies are generally not in difficult situations, although some smaller crypto exchanges can still fail.” ” the industry has moved beyond “other big shoes that have to fall,† Bankman-Fried said in the interview.
Voyager Capital was financially affected by Three Arrows Capital’s exposure. Bankman-Fried’s trading company, Alameda Research, assisted Voyager Digital with a $200 million revolving credit facility in cash and stablecoin. FTX also lent a $250 million revolving credit to BlockFi in June.
Bankman-Fried said the companies are being bailed out as part of protecting customers’ assets and ensuring their trust is not violated. FTX revealed in January that FTX Ventures has a $2 billion venture capital fund for investments in digital assets. The company likely withdrew money from the venture to bail out struggling businesses. Bankman-Fried’s last resort has helped several businesses and clients during the crypto winter.