Despite being criticized heavily by Kraken CEO Jesse Powell, FTX’s Sam Bankman-Fried has reached out to Kraken for a possible bailout.
This is after a collapse in talks that FTX was having with Binance about a possible takeover.
The most recent development happened after Sam Bankman-Fried stated he was planning emergency fundraising efforts.
Impending Tron Takeover?
The founder of Tron, Justin Sun, has emerged as a potential savior for the troubled cryptocurrency exchange after FTX CEO Sam Bankman-Fried reportedly called Sun and asked for help.
The co-founder of Tron also disclosed that he and his group are developing a potential remedy.
Sun’s interest in FTX has temporarily increased the price of TRON from $0.6 to $2.50, a 4000% rise.
FTX’s $9.4 Billion Bailout
According to Reuters, the CEO of the troubled exchange is reportedly seeking a bailout package worth up to $9.4 billion, with $2 billion coming from a consortium of investment institutions and $1 billion each from Justin Sun, OKX, and Tether.
According to a Wall Street Journal source, FTX gave Alameda Research, a trading company associated with it, billions of dollars to finance dangerous wagers.
Alameda borrowed $10 billion from the exchange, which had $16 billion in customer assets, and is now obligated to pay the exchange the whole amount.
Sam Bankman-Fried Speaks Up
The entire FTX, Alameda debacle has left a bad taste in the mouth of many crypto investors who were astonished by FTX’s inability to honor withdrawal requests and preserve its position. This has also severely damaged Bankman-Fried’s reputation in the industry.
Clearly saddened by the developments of the last few days, the FTX CEO broke his silence on Twitter. He apologized to all the affected investors and said that he should have communicated better in a Twitter thread.
Some bit of positive news from Nansen claims that FTX has now reopened withdrawals
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