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FTX CEO unhappy as crypto firms fail to aid each other

Crypto firms
TL;DR Breakdown
  • SBF is unhappy that other top crypto firms are not providing bailouts.
  • Binance to join FTX with bailout offers.

CEO of FTX crypto exchange, Sam Bankman-Fried, has expressed his reservations towards other ‘healthy’ crypto firms for failing to offer a bailout to competing crypto firms hit hard during the recent crypto crash.

SBF spoke on Wednesday during a podcast nothing that he would be happy if other top crypto firms provided bailouts for smaller firms outside FTX exchange. “I would love it if other people did that,” Bankman-Fried said.

“I would be super happy for others to take that on instead of me. The reason that I have been doing it, frankly, is because it doesn’t seem clear to me that there are others who are stepping up and doing that.”

Sam Bankman-Fried’s promise to bailout crypto firms

SBF, back in June, announced that his exchange would provide a $250 million credit injection to crypto firm BlockFi. This came after BlockFi announced it was cutting its staff owing to volatile macroeconomic conditions worldwide.

The FTX CEO also said in an interview recently that his exchange still has billions in cash to bailout other players in the crypto space, finding it difficult to keep afloat. SBF is described as John Morgan by Anthony Scaramucci, who founded SkyBridge Capital liking his bailout to J.P Morgan’s bailout after the 1907 crisis.

However, SBF wants other active and able crypto firms to join him in his bailout exploits. During the podcast, he reveals that FTX has reached out to other ‘healthy’ crypto companies—to “everyone we could in the ecosystem,” in his words—looking to partner up on bailout deals.

“In general, ‘No’ was the answer,” he said, “or rather, ‘Yes’ followed by, ‘Wait, that company looks like there might be a hole in the balance sheet, and maybe there was some mismanagement.’ And we’re like, I don’t know what you were expecting, dude. Why do you think they’re looking for a bailout?

Binance CEO willing to join bailout

Binance CEO Changpeng Zhao, in the past, has also said he’s looking at providing a bailout also.

“Many companies are short on money, that doesn’t mean most of them are bad companies,” CZ said. “And those things we are perfectly willing to do. And we’re looking at a high number of deals like that… And some of them are actually good deals. So I think you will see that we will be investing, bailing out, saving multiple projects.”

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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