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.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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