FTX chief began seeking investors to pay traders – WSJ

The difficulties facing the platform were revealed last week. First, FTX turned to its competitor Binance for help due to a liquidity crisis. Binance considered buying some of the company’s assets, but later abandoned these plans. The company filed for bankruptcy on Friday following CoinDesk’s investigation into the exchange’s inability to meet its obligations. The next day, the exchange was hacked, the attackers withdrew more than $380 million.

According to the WSJ, Bankman-Fried is seeking investors to cover a deficit of more than $8 billion. The newspaper writes that companies that are under bankruptcy protection can obtain loans to support their operations. The condition of such investments is the obligation to close loans at the expense of the earned funds.

If the entrepreneur succeeds in finding investments, they will need to obtain approval from the regulator. The sources for the publication claim that Bankman-Fried will not provide support for the operation of the exchange and that it needs the funds to pay individual traders who were unable to withdraw money. At the same time, the newspaper was unable to find out what Bankman-Fried is willing to offer in exchange for possible investments.

Against the backdrop of FTX’s woes and the impact of its bankruptcy on the crypto industry, Binance initiated the opening of a fund to support promising exchanges facing a liquidity shortage. The idea was supported by the founder of the Tron blockchain, Justin Sun.