SBF tells investors FTX needs $8B in emergency funding | The Financial Express

SBF tells investors FTX needs $8B in emergency funding

Bankman-Fried has also noted that he will use his personal wealth to “make customers and investors whole.”

SBF tells investors FTX needs $8B in emergency funding
Bloomberg's source also appears to confirm reports that FTX is seeking rescue financing

Sam Bankman-Fried reportedly requested $8 billion in emergency funding from investors to cover a shortfall caused by a surge in withdrawal requests to his cryptocurrency exchange in recent days, as reported by Cointelegraph.

The CEO reportedly made the request to investors in a Nov. 9 call where he outlined ways to help solve FTX’s financial woes, according to a report in the Wall Street Journal (WSJ) citing “people familiar with the matter.” According to the source, Bankman-Fried is looking to raise $3 billion to $4 billion in equity, with the exchange potentially raising some debt to cover the shortfall.

Cointelegraph further stated that according to the Wall Street Journal (WSJ), Bankman-Fried has also noted that he will use his personal wealth to “make customers and investors whole.”

It is also understood that during the call, the FTX CEO placed some of the blame for the exchange’s predicament on what he calls a campaign against the exchange, which has resulted in a rush of investors looking to cash out for fear of losing their investment.

Meanwhile, Bloomberg reported on Nov. 9 that Bankman-Fried told investors that if the company did not receive a cash injection, it would be forced to file for bankruptcy, citing a “person with direct knowledge of the matter.”

Bloomberg’s source also appears to confirm reports that FTX is seeking rescue financing in the form of a combination of debt and equity in order to avoid liquidation.

(With insights from Cointelegraph)

Also Read: Indonesia plans to tighten oversight of crypto market, task OJK with regulation

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First published on: 10-11-2022 at 12:50 IST