The bear market and the accompanying bankruptcy dominated 2022. Over the past several months, numerous well-known crypto companies have been observed declaring bankruptcy. It appears that another well-known exchange will shortly be added to this list. The collapse of FTX shocked the ecology as a whole. Even more alarming were the CEO Sam Bankman-Fried’s remarks that FTX was on the verge of bankruptcy.
A recent Bloomberg story claims that SBF informed the investors that the company faced a $8 billion shortfall. To stay afloat, the exchange need around $4 billion. The exchange would be in danger of going out of business if FTX was unable to collect these money.
According to reports, SBF acknowledged that he “f—ed up” during a conference call. He even implied that if investors came forward to help save SBF’s sinking ship, FTX, he would be “extremely, unbelievably grateful.”
With an agreement for an acquisition, Binance turned out to be a saving grace. However, in the cryptocurrency community, there were reports that the exchange was pulling out. According to Bloomberg, SBF consistently stated that Changpeng Zhao, CEO of Binance, was staying in the agreement.
The exchange confirmed that the problems “are beyond our control or ability to aid” but things went awry. Consequently, the transaction failed.
In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.
— Binance (@binance) November 9, 2022
Despite the involvement of federal authorities, the community still has its doubts about investors saving the struggling company.
Justin Sun, Tron’s CEO to the rescue?
Fear was spread among its users after FTX unexpectedly stopped withdrawals. Justin Sun, the inventor of Tron, wanted to assist FTX clients while industry leaders were occupied discussing their exposure to FTX. He said that his team was “working around the clock to avert further deterioration” in a recent Twitter conversation.
Further to my announcement to stand behind all Tron token (#TRX, #BTT, #JST, #SUN, #HT) holders on #FTX, we are putting together a solution together with #FTX to initiate a pathway forward. @FTX_Official
— H.E. Justin Sun 孙宇晨 (@justinsuntron) November 10, 2022
Further providing limited details, Sun said;
“I have faith that the situation is manageable following the wholistic approach together with our partners.”
