Bankman-Fried said his firm faced up to $8 billion shortfall; Binance bailed on FTX takeover, citing finances and probes
Sam Bankman-Fried told FTX.com investors Wednesday that without a
cash injection the company would need to file for bankruptcy, according
to a person with direct knowledge of the matter.
On a call before
Binance pulled an about-face and bailed on its takeover offer,
Bankman-Fried informed investors his crypto exchange faced a shortfall
of up to $8 billion and needed $4 billion to remain solvent, the person
said, asking not to be named discussing private talks. FTX is attempting
to raise rescue financing in the form of debt, equity, or a combination
of the two, the person said.
“I f---ed up,”
Bankman-Fried told investors on the call, according to people with
knowledge of the conversation. He said he would be “incredibly,
unbelievably grateful” if investors could help.
An FTX representative declined to comment.
The acknowledgment of his firm’s deepening
troubles and limited options is a stunning turn for the crypto
industry’s onetime wunderkind, who was once worth $26 billion
and likened to John Pierpont Morgan. It also underscores the
uncertainty hanging over FTX, its clients and cryptocurrency markets. ...
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