FTX CEO Publicly Apologizes For Recent Liquidity Crisis

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Sam Bankman Fried; Photo Source: Twitter
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.

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. 

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.

Written by
Ayush Pande
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.

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. 



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


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. 

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.

Written by
Ayush Pande