Former FTX CEO Sam Bankman Fried continues attempting to secure financing to bring his bankrupt cryptocurrency exchange out of bankruptcy.
According to a Monday CNBC report, Bankman-Fried said that he is still trying to secure a bail deal for FTX — a deal that would have to fill a hole of billions of dollars on the company’s balance sheet. He claimed that there are billion of dollars in customer assets in jurisdictions “where there were segregated balances” such as the United States and that “there are billions of dollars of potential funding opportunities out there.”
Bankman-Fried has lost access to his corporate email and all company systems. Still, despite this, he is trying to set the future of FTX, as confirmed by capital investors telling CNBC that the former crypto billionaire had been calling to try and secure funding in recent weeks. Still, those investors commented that they could not think of anyone with enough capital and risk appetite to secure such a large loan.
Georgetown University law professor and principal at Gordian Crypto Advisors Adam Levitin told CNBC that Bankman-Fried does not necessarily have the achieve to do what he is trying to. He explained:
“He’s no different than any third-party suitor at this point, other than the fact that he’s a majority FTX shareholder. […] He could come into Delaware with an unsolicited offer, and say I want to buy out all the creditors for a price. But that would have to be approved by the bankruptcy court — he can’t force a deal.”
Also FTX’s new CEO said that he is open to a bailout and on Saturday he announced that he is looking to sell or restructure the company. He also noted “that many regulated or licensed subsidiaries of FTX, within and outside of the United States, have solvent balance sheets,”
Adrian Zmudzinski
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