FTX Founder Is Trying To Raise Funds To Pay Back Bankrupt Crypto Exchange's Clients: Report

Zinger Key Points
  • Embattled founder of FTX is seeking to raise fresh funds, despite filing for bankruptcy last week.
  • The effort has been unsuccessful, The Wall Street Journal reports.

Sam Bankman-Fried, the founder of the embattled cryptocurrency exchange FTX, is seeking to raise fresh funds, even as his exchange, along with 130 other associated entities, initiated bankruptcy proceedings last week.

Bankman-Fried and a small number of other employees spent the last weekend making calls in an effort to secure commitments from investors to cover a potential $8-billion shortfall in order to pay back FTX's clients, according to a Tuesday Wall Street Journal report.

The report states that his attempts to make up for the shortfall have not succeeded. 

Also read: The FTT Debacle: Want To Cash In? Here's What Experts Said After Binance Selloff

It is unclear what Bankman-Fried has proposed in exchange for any potential infusion of cash or whether any investors have made any firm commitments, the Journal said. 

On Friday, Bankman-Fried stepped down as FTX's CEO and the company filed for bankruptcy in a U.S. court.

Despite the bankruptcy proceedings, he still remains the largest shareholder in the firm.

The value of FTT FTT/USD, the native token of the crypto exchange, has lost nearly all of its value amid the FTX fiasco.

Bankman-Fried has been busy tweeting cryptic alphabets on Twitter.

Asked why he was posting such tweets, Bankman-Fried said he does not know why he is doing so and that it he is improvising

Next: Blockchain Data Reveals That Alameda Accumulated $60M Of Tokens Prior To FTX Listings

Photo via Shutterstock. 

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsTop StoriesMarketsMediaFTXSam Bankman-FriedThe Wall Street Journal
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!