Head of FTX crypto trading giant has attempted to save sinking crypto businesses during Bitcoin crash, here’s outcome
In a recent article, Bloomberg shared that the head of the FTX exchange, billionaire Sam Bankman-Fried, was attempting to salvage some sinking crypto-related businesses. This caused his company to lose about $1 billion, and now he says not all of these investments are going to be profitable.
Bankman-Fried spoke about this during the “David Rubenstein Show: Peer-to-Peer Conversations.”
“Mixed Results” of FTX Investing
According to the CEO of FTX, he decided to invest around one billion USD in various crypto companies which started sinking after the sudden collapse of Bitcoin, dragging the entire cryptocurrency market with him.
He believes that some of the companies they invested in might bring them some profit; however, some most likely will not do that. One of these companies, that got a loan from Voyager Digital Ltd (founded by Bankman-Fried), Alameda Research, went broke in July despite getting $485 million from Voyager a month earlier.
Another company that got a loan from FTX, or its US-based arm, was BlockFi. It agreed to take out a loan of $400 million, along with an option to purchase the firm. According to Bankman-Fried, BlockFi had a strong team and an ongoing functional business, and so they needed the money to operate efficiently in the long run.
The billionaire stressed that his intention was not merely to make money on these deals but to backstop companies that were suffering from the current bearish crypto market.
