Tron’s founder Justin Sun is prepared to provide billions to save Sam Bankman-Fried’s battle cryptocurrency exchange, FTX. Bloomberg News reporter Tom Mackenzie shared the development on Friday morning, saying that Mr. Sun told him so. However, the bailout agreement remains subject to due diligence, with Mr. Sun saying they still “need to do due diligence.”
@justinsuntron tells me he's prepared to provide FTX with billions in aid
— Tom Mackenzie (@TomMackenzieTV) November 11, 2022
"need to do full diligence"
"good moment to show unity in crypto industry" @FTX_Official @SBF_FTX #exclusive https://t.co/B3wUUbx4gB
Will Justin Sun bail out FTX?
Earlier this week, FTX’s founder had reached out to Binance for aid amid its liquidity struggles. Both companies signed a non-binding agreement to save the sinking crypto exchange, which later fell through after Binance corporate due diligence, coupled with other factors, including reports of FTX mismanagement of customers’ funds and US authorities’ interference in the matter.
Since Binance walked away, FTX’s founder have been pursuing potential raises from investors to cover its shortfall estimated at over $8 billion. On Thursday, Bankman-Fried discussed with employees about his priority of raising funds in the coming week. Justin Sun was named among the potential investors in contact for the possible raise.
A day earlier, Mr. Sun stated on Twitter that his team are working round the clock to proffer a “wholistic” solution for the liquidity crunch plaguing FTX. He further disclosed that both parties have collaborated to provide a credit facility to enable holders of certain Tron-based cryptocurrencies like TRX, JST, SUN, etc., including the Houbi exchange token, HT.
This is only the initial step taken towards a wholistic solution that is being crafted to resuscitate and return to normalcy for all #FTX users. I greatly appreciate the collaborative work between @FTX_Official teams 🔥
— H.E. Justin Sun 孙宇晨 (@justinsuntron) November 10, 2022
Alameda Research forced to stop trading
Besides Justin Sun, Reuters reported that FTX’s founder also planned to raise at least $1 billion from OKX cryptocurrency exchange, and Tether, citing sources. But Tether’s chief technology officer, Paolo Ardoino, debunked the claim, stating that Tether doesn’t hold any plan to invest or lend money to either FTX or Alameda Research, the trading company also operated by Sam Bankman-Fried.
Tether does not have any plans to invest or lend money to FTX/Alameda. Full stop.
— Paolo Ardoino 🍐 (@paoloardoino) November 10, 2022
Alameda’s situation is also dire, if not worse than FTX’s. In his apology tweet, Bankman-Fried confirmed that Alameda will wind down trading and “won’t be trading on FTX anymore.” Sources also confirmed to WuBlockchain on Friday that all employees of Alameda Research have resigned.
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