A Wall Street Journal report from Tuesday said that FTX founder and bankrupt altruist Sam Bankman Fried called several investors over the weekend to raise billions in fresh capital. Persons with knowledge of the matter said SBF reckons he can secure funding to pay back customers, WSJ reported
Tuesday’s report added that “a few remaining employees” joined Bankman-Fried in his attempt though their names were not mentioned. The news comes after FTX for bankruptcy and SBF resigned as CEO.
Users and analysts who dug into FTX’s books believe Bankman-Fried used customers’ funds to back Alameda, his quantitative trading firm with intrinsic ties to the troubled crypto exchange.
It’s unclear how much of user assets were used to prop up Alameda but the aftermath resulted in a massive $8 billion hole in the exchange’s balance sheet. The liquidity crisis was mentioned by Changpeng Zhao as the main reason BINANCE chose not to buy FTX after both exchange heads announced an agreement.
