Sam Bankman-Fried: Some exchanges face bankruptcy

- Advertisement -

Some third-tier bitcoin exchanges are close to bankruptcy. About it in an interview Forbes said FTX CEO Sam Bankman-Fried.

The billionaire said he is aware of the risks of providing liquidity to BlockFi and Voyager Digital, which are facing problems as a result of the possible collapse of hedge fund Three Arrows Capital.

- Advertisement -

“We are ready to make a somewhat bad deal if that is what is needed to stabilize the situation and protect clients,” he explained.

- Advertisement -

According to the sources of the publication, Alameda Research, associated with Bankman-Freed, could lose at least $70 million on the deal with Voyager. The current capitalization of the crypto-broker indicates the risks of its bankruptcy.

The head of FTX is far from altruistic and is not ready to “rescue” all problem companies.

“Some of them have gone too far. They are not worth supporting in the event of a significant hole in the balance sheet, regulatory difficulties, or because there is not much business left to save,” Bankman-Fried explained.

The entrepreneur is concerned about the ongoing problems in the industry due to the established practice of paying generous interest on deposits, which worked during the bull market. Companies provided loans at higher rates or used funds in DeFi protocols, but now this has stopped working.

The high rate of business scaling was also characteristic of miners, which are of interest to the head of FTX.

Bankman-Fried called speculation about the collapse of Tether groundless.

“I don’t think there is any evidence to support them,” he explained.

The other day, the head of FTX denied information about plans to take over the online broker Robinhood.

Bankman-Fried said in May that the exchange would spend “billions” of dollars buying stakes in other companies to expand its product line.

Earlier, a similar thesis about the inexpediency of saving “bad companies” was put forward by Binance CEO Changpeng Zhao.

Stay in touch! Subscribe to World Stock Market at Telegram.

Source: Cryptocurrency

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles