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. 

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Posted In: CryptocurrencyNewsTop StoriesMarketsMediaFTXSam Bankman-FriedThe Wall Street Journal
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