FTX founder 'SBF' warns that some crypto exchanges are 'already bankrupt'
Crypto Exchange Bankruptcy
Modified Date:- Published Date:-Categories: Cryptocurrency
FTX founder 'SBF' warns that some crypto exchanges are 'already bankrupt'
One of the richest men in crypto, 30-year-old FTX founder and CEO Sam Bankman-Fried (also known as SBF), has warned that some "third-tier" crypto exchanges are already secretly bankrupt. In its recent comments to Forbes, SBF declined to name the exchanges it believes are currently broken.However, his warning comes as the May collapse of Terra Blockchain continues to wreak havoc on the crypto market, with the highly Terra Luna-exposed Singapore-based venture capital firm Three Arrows Capital (3AC) recently announcing that it is close to bankruptcy. Is.
As a result of 3AC's insolvency issues, fellow crypto-focused firms BlockFi and Voyager Capital – each of which gave 3AC large loans – also found themselves in treacherous financial waters. Fortunately for these firms, SBF, through its exchange FTX and trading firm Alameda Capital, swooped in to provide them with a US$250 million credit to further advance and protect their clients' funds.
It also recently emerged that SBF is looking to go beyond simply providing credit to BlockFi, with reports suggesting that it is now in talks to acquire the New York-based firm. Crypto's biggest stablecoin, Tether (USDT) A much-maligned digital asset SBF has no fear. While many believe that the $70 billion stablecoin collapse is inevitable as it reportedly has less than ideal collateral status, the SBF claims there is no cause for concern, saying.
“I think the really bearish views on Tether are wrong… I don’t think there is any evidence to support them.” In other SBF news, the crypto magnate announced on a podcast last month that it was willing to donate up to US$1 billion to the US Democratic Party to prevent Donald Trump from returning to the White House.
Terra is a digital asset wallet, broker and exchange in one connected system. Terra allows users to get access to the entire world of digital assets and create their own investment portfolio with many unique features.