Sam Bankman-Fried Claims FTX US Had Enough Funds To Pay All Customers

Zinger Key Points
  • FTX founder reveals more details about the state of affairs of FTS US.
  • Sam Bankman Fried however, did not divulge details about FTX's dealings with its sister firm Alameda Research.

FTX Founder Sam Bankman-Fried on Tuesday said the U.S. arm of the cryptocurrency exchange, which filed for Chapter 11 bankruptcy on Friday, had enough money in its reserves to pay all the customers who lost money due to the collapse of the FTX Token FTT/USD, the native token of the exchange.

He also said FTX’s sister firm Alameda Research, which is in the eye of the storm for using the crypto exchange’s funds for risky trading bets, had more assets than liabilities.

“Alameda had more assets than liabilities M2M (but not liquid!),” the founder tweeted, and added, “Alameda had margin position on FTX Intl.”

Also read: 'I'm improvising,' Says Sam Bankman-Fried When Asked Why He's Posting Cryptic Tweets

“FTX US had enough to repay all customers,” he further stated.

Bankman-Fried further said not everyone would necessarily agree with his statement.

Meanwhile, Bankman-Fried is reported to have sought to raise fresh funds, even as his exchange, along with 130 other associated entities, initiated bankruptcy proceedings last week.

Bankman-Fried and a handful of other employees spent 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.

Next: FTX Disaster Continues: Hacker Drains Accounts, Becomes 35th Largest Ether Holder

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsMarketscryptocurrenciesFTXSam Bankman-Fried
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!