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Breaking: Justin Sun is prepared to bailout FTX with billions

Breaking: Justin Sun is prepared to bailout FTX with billions

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.”

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.

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.

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.

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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