After UBS’ bid for the troubled bank Credit Suisse fell short, Justin Sun, founder of the TRON blockchain, proposed a $1.5 billion acquisition deal for the institution.
In his Twitter thread, the crypto billionaire claimed that turning Credit Suisse into a financial institution that supports cryptocurrencies, would pave the way for a more creative and decentralized financial system.
By acquiring Credit Suisse and transforming it into a crypto-friendly financial institution, we can create a new standard for financial innovation that benefits everyone. We can also leverage the country’s progressive policies and position ourselves as a leader in financial innovation.
The digital asset industry was just recuperating from the collapse of the crypto trifecta banks when another major European bank waved the red flag.
On 14 March, Switzerland-based Credit Suisse presented its annual report for 2022 stating that it had found serious deficiencies in the controls over financial reporting.
The bank’s share price fell by about 25% the following day after its biggest backer, Saudi National Bank, turned down further financial support.
Later that same week, Credit Suisse used a variety of strategies to raise money, including a 50 billion Swiss franc loan from the Swiss National Bank.
All that, however, failed to stop as investors and clients continued to withdraw money from Credit Suisse, with withdrawals reaching over 10 billion Swiss Francs.
TRON Founder Assistance To Crisis-Hit Credit Suisse
In order to avoid a potential bank run, the Swiss authorities persuaded the UBS group to acquire the troubled bank.
As per the latest reports, UBS declared that it has struck an agreement to buy Credit Suisse for $3.25 billion [CHF 3 billion] in an all-stock transaction.
That being said, this isn’t the first time the TRON founder has proposed to help the distressed bank.
Back in Oct 2022, the crypto mogul expressed interest to buy shares of the embattled investment bank and bring it to web3.
The bank’s CEO, Ulrich Koerner, then released a strategic plan that was regarded as the bank’s “D-Day” in order to prevent bankruptcy.
A few weeks ago, Sun delivered on his pledge to send $100 million USDC, into the Huobi exchange’s newly established liquidity fund, TronWeekly reported.
According to the TRON founder, “leveraged liquidation on the market driven by a few users” was what led to the sharp declines in the price of the exchange’s native token HT and subsequent comeback.