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Sam Bankman-Fried Tried to Raise Funds Despite Bankruptcy Filing: Report

Summary:
Sam Bankman-Fried, the former CEO of the now-bankrupt FTX, tried to rally financial support for his beleaguered crypto exchange. This comes as the platform is facing bankruptcy amid an billion black hole in its balance sheets. FTX collapsed in spectacular fashion over the past week, triggering a contagion that has impacted the broader crypto space. Several projects have now reported having funds stuck in limbo with the exchange. Sam Bankman-Fried tried to source funds from investors to bail out his bankrupt crypto exchange, the Wall Street Journal reported on Tuesday (November 15, 2022). The report stated that Bankman-Fried and a few remaining employees at the bankrupt exchange attempted to secure a financial commitment from potential investors over the weekend. This

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Sam Bankman-Fried, the former CEO of the now-bankrupt FTX, tried to rally financial support for his beleaguered crypto exchange. This comes as the platform is facing bankruptcy amid an $8 billion black hole in its balance sheets.

FTX collapsed in spectacular fashion over the past week, triggering a contagion that has impacted the broader crypto space. Several projects have now reported having funds stuck in limbo with the exchange.

  • Sam Bankman-Fried tried to source funds from investors to bail out his bankrupt crypto exchange, the Wall Street Journal reported on Tuesday (November 15, 2022).
  • The report stated that Bankman-Fried and a few remaining employees at the bankrupt exchange attempted to secure a financial commitment from potential investors over the weekend.
  • This emergency funding was purportedly to plug an $8 billion hole in the exchange’s balance sheet and pay off affected customers.
  • FTX paused withdrawals a week ago after a bank run on the exchange following revelations of financial trouble within the platform. The $8 billion balance sheet hole has been linked with a $10 billion loan given to Alameda Research, FTX’s sister firm.
  • With the exchange going into bankruptcy, the emergency funding would have required approval from creditors and court officials. However, the attempt failed.

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