Sam Bankman-Fried has reportedly asked investors for $8 billion in emergency funding in order to meet customer withdrawal demands.
The source suggests that Bankman-Fried is looking to raise $3 billion to $4 billion in equity and that the exchange could raise some debt to cover the shortfall.
Bankman-Fried has also reportedly said he would use his personal wealth to “make customers and investors whole," according to the WSJ source.on what he says is a campaign against the exchange, which has caused a run of investors looking to cash out in fear of losing their investment.from Reuters on Nov. 8 suggests that FTX saw around $6 billion in withdrawals in the 72 hours leading up to Nov. 8.
He also reportedly stated in the call FTX would be unable to “settle withdrawals as its collateral was dropping in value and couldn’t be liquidated.” On Nov. 9, the FTX website posted a new banner stating that it is"currently unable to process withdrawals. We strongly advise against depositing."from Bloomberg claims that Bankman-Fried told investors that without a cash injection, the company would need to file for bankruptcy, citing a “person with direct knowledge of the matter."
Bloomberg's source also appears to confirm suggestions that FTX is looking to raise rescue financing in a combination of debt and equity to save itself from liquidation.
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