FTX tells investors bankruptcy is likely without fresh cash: Bloomberg

Quick Take

  • FTX CEO Sam Bankman-Fried told investors that the company would need to file for bankruptcy without a cash injection, Bloomberg News reported.
  • Bankman-Fried told the investors that it faced a shortfall of up to $8 billion.

FTX founder and CEO Sam Bankman-Fried told investors that the crypto exchange would need to file for bankruptcy without a cash injection, Bloomberg News reported, citing a person with direct knowledge of the situation.

Before Binance announced that it would drop its bid to take over the rival exchange, Bankman-Fried had told the investors that it faced a shortfall of up to $8 billion, Bloomberg cited the person as saying.

FTX was attempting to raise capital in the form of debt, equity, or a combination of both.

Bankman-Fried had told investors in a conference call Wednesday afternoon that Binance would not walk away from the deal just about an hour before it finally backed out, the report said.

 


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