FTX's Bankman-Fried seeks more than $9 billion for exchange rescue: Reuters

Quick Take

  • FTX is seeking to raise more than $9 billion to plug a financial shortfall, according to Reuters.
  • Potential deal participants include Tron founder Justin Sun and crypto exchange OKX.

Beleaguered crypto exchange FTX is seeking to raise more than $9 billion to plug a financial shortfall, according to Reuters.

CEO Sam Bankman-Fried is looking to draw funds from numerous sources, including Tron founder Justin Sun and stablecoin issuer Tether, Reuters said, citing sources familiar with the matter. An array of investment firms, as well as crypto exchange OKX, are also said to be involved in discussions, according to Reuters, as well as investor Dan Loeb. 

Axios reported separately that crypto exchange Kraken has also been approached. 

News of a bailout effort followed Wednesday's news that Binance would not move forward with a deal to acquire FTX. 

Earlier Thursday, Bankman-Fried indicated that a rescue package was being sought. "So, right now, we're spending the week doing everything we can to raise liquidity," he wrote in a Twitter thread, later adding: "There are a number of players who we are in talks with, LOIs, term sheets, etc."

Reuters indicated that the process is slow-going. Bankman-Fried, according to the outlet, has resisted seeking bankruptcy protection amid FTX's woes.

Reports emerged Thursday morning that FTX used customer funds to lend billions of dollars to sister company Alameda Research. In the earlier tweet thread, Bankman-Fried said that Alameda would be shuttered. 

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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