The second-richest crypto billionaire is warning that some digital asset companies are facing financial difficulties as the market downturn continues.
Forbes reports that FTX co-founder and CEO Sam Bankman-Fried believes that some lesser-known crypto exchanges are already bankrupt.
“There are some third-tier exchanges that are secretly insolvent already.”
According to the report, Bankman-Fried is of the opinion that some of the digital asset companies facing difficulties are insurmountable.
“There are companies that have basically gone too far and it’s impractical to back them for reasons like a substantial hole in the balance sheet, regulatory issues, or there’s not much business left to salvage.”
The report says that the goal of the FTX CEO in helping struggling crypto businesses financially is to stabilize the affected businesses and protect users.
“You know, we’re willing to make a pretty bad deal here, if that’s what it takes to stabilize things and protect customers.”
Last week’s FTX injected Roughly $250 million in crypto lender BlockFi to bolster its balance sheet after digital asset prices crashed.
Earlier this month, the crypto platform Voyager Digital He received A revolving credit facility consisting of $200 million in cash and 15,000 Bitcoin from Alameda Research, a quantitative trading firm founded by Bankman-Fried. The funds will be used to safeguard client assets amid market volatility.
Bankman-Fried is classified second on the Forbes 2022 list of the world’s richest crypto billionaires, with a net worth of $24 billion. The world’s richest crypto billionaire is Binance co-founder and CEO Changpeng Zhao, who has a net worth of $65 billion.
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