Amidst the bear market and the accompanying bankruptcy, the FTX saga also happens to dominate 2022. Over the past several months, numerous well-known crypto companies have been observed declaring bankruptcy. It appears that another well-known exchange will shortly be added to this list. The collapse of FTX shocked the ecology as a whole. Even more alarming was the CEO Sam Bankman-Fried’s remarks that FTX was on the verge of bankruptcy.
A recent Bloomberg story claims that SBF informed the investors that the company faced an $8 billion shortfall. To stay afloat, the exchange needs around $4 billion. The exchange would be in danger of going out of business if FTX was unable to collect this money.
According to reports, SBF acknowledged that he “f—ed up” during a conference call. He even implied that if investors came forward to help save SBF’s sinking ship, FTX, he would be “extremely, unbelievably grateful.”
With an agreement for an acquisition, Binance turned out to be a saving grace. However, in the cryptocurrency community, there were reports that the exchange was pulling out. According to Bloomberg, SBF consistently stated that Changpeng Zhao, CEO of Binance, was staying in the agreement.
The exchange confirmed that the “issues are beyond our control or ability to help,” but things went awry. Consequently, the transaction failed.
The community is still dubious about investors saving the struggling company now that federal officials are engaged.
Justin Sun, FTX’s Savior in Disguise?
Fear was spread among its users after Bankman-Fried’s Exchange unexpectedly stopped withdrawals. Justin Sun, the inventor of Tron, wanted to assist FTX clients while industry leaders were occupied discussing their exposure to the exchange. He said that his team was “working around the clock to avert further deterioration, ” in a recent Twitter conversation.
Sun provided scant details, further adding,
“I have faith that the situation is manageable following the wholistic approach together with our partners.”