On July 22nd, an announcement from crypto exchange FTX disclosed that Sam Bankman-Fried, the founder and chief executive of the exchange, was ready to offer early liquidity to customers of Voyager Digital. In addition, the CEO went as far as saying that he was prepared to spend hundreds of millions beyond what they already have in order to assist the crypto companies that are suffering as a result of the downturn in the market.
Warning from the CEO
On June 28th, Sam Bankman-Fried claimed that there were some digital asset companies in the market that were ‘secretly insolvent’. He had also issued a warning that there would be more insolvencies to occur soon and he turned out to be right in this regard.
It had started with Celsius Network imposing a freeze on account withdrawals on its platform and that triggered the eventual collapse of a number of companies that were facing financial problems. Eventually, Celsius filed for bankruptcy, as did Voyager Digital and Three Arrows Capital (3AC).
CEO wants to help
Almost a month later, the CEO has now said that he is willing to assist customers of crypto lender Voyager Digital, which has filed for bankruptcy. Bankman-Fried tweeted on July 22nd that he was happy to do whatever possible to provide liquidity to customers of the crypto lender.
According to a press release, a joint offer was announced by the FTX crypto exchange with Alameda ventures and West Realm Shires Inc. Bankman-Fried stated that he wanted to provide the customers with a better way of improving their liquidity.
He asserted that those who had invested in Voyager did not want to deal with bankruptcy proceedings that would leave them with unsecured claims. He said that the aim of the joint proposal was to come up with a better way of resolving the insolvent company, which would help customers in getting liquidity as early as possible. He added that they wanted customers to get back some of their assets without having to take one-sided risks and speculating on the outcome of the bankruptcy proceedings
Assistance for crypto firms
In an interview with CNBC, Bankman-Fried said that his exchange was willing to use hundreds of millions to assist crypto firms that were suffering due to the market’s downturn. He also stated that he wanted to see more people stepping in to offer capital to those who require it.
At the end of May, the CEO had said something along the same lines. The FTX CEO had asserted that his exchange was ready to spend billions on acquisitions and mergers for taking the crypto industry forward. The executive also said that he expects crypto regulations to increase in the future. He also talked about the recent case of insider trading involving crypto that was filed by the US Securities and Exchange Commission (SEC).
The FTX boss wants the crypto industry to have federal oversight, regardless of whether it comes from the SEC or the CFTC.