In the words of Sam Bankman-Fried, “Right now, we're spending the week doing everything we can to raise liquidity. I can't make any promises about that. But I'm going to try. And give anything I have to if that will make it work.”
Sam Bankman Fried, the CEO of FTX, issued an apology and shed light on the circumstances that led to FTX facing a liquidity crunch.
13) Because at the end of the day, I was CEO, which means that *I* was responsible for making sure that things went well. *I*, ultimately, should have been on top of everything.
— SBF (@SBF_FTX) November 10, 2022
I clearly failed in that. I'm sorry.
According to him, FTX’s predicament began when he miscalculated the USD liquidity as 24 times the average daily withdrawals. In actuality, the liquidity was only 0.8 times the $5B worth of withdrawals on November 6.
He claimed that his priority is providing relief to users, with FTX currently focusing on raising liquidity for the platform.
As per Bloomberg’s report, the CEO of FTX earlier alleged that his firm is in deficit on $8B worth of funds, adding that FTX required at least $4B to prevent insolvency.
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Sam admitted that although he is unable to provide transparency on the failed deal with Binance, he is in talks with “a number of players” in the crypto industry.
Further to my announcement to stand behind all Tron token (#TRX, #BTT, #JST, #SUN, #HT) holders on #FTX, we are putting together a solution together with #FTX to initiate a pathway forward. @FTX_Official
— H.E. Justin Sun (@justinsuntron) November 10, 2022
A few hours ago, Justin Sun, the Founder of TRON (TRX) announced his plan to support FTX by “putting together a solution” to bail it out of bankruptcy,
“The ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike.”
As a fallout of FTX’s liquidity crisis, Alameda Research will be "winding down trading." Moreover, the recent events only concern FTX International, with FTX US not under the threat of a liquidity crisis.
