FTX Bankruptcy Likely Without Cash Injection, Says CEO SBF: Report

InfoNesia.xyz – Cryptocurrency exchange FTX may be forced to declare bankruptcy if it does not receive an infusion of fresh capital, founder and CEO Sam Bankman-Fried reportedly told investors on Wednesday.

That’s according to a report from Bloomberg, citing an unnamed source who was privy to the conversation. Bankman-Fried reportedly told investors that FTX is short as much as $8 billion following a liquidity crisis. The Wall Street Journal cited the same figure, noting that FTX needs a cash infusion to cover customer withdrawal requests.

An FTX representative declined comment to Bloomberg, the publication reported. FTX did not immediately respond to Decrypt’s request for comment.

On Tuesday, Binance said that it had signed a non-binding letter of intent to purchase FTX.com amid a liquidity crisis. Today, however, Binance said that it would not follow through, citing the extent of FTX’s financial problems.

“Our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” Binance said in a statement this afternoon.