FTX CEO Sam Bankman-Fried Warns More Crypto Company Bankruptcies
Crypto Bankruptcies
Modified Date:- Published Date:-Categories: Cryptocurrency
FTX CEO Sam Bankman-Fried Warns More Crypto Company Bankruptcies
In a recent interview, Sam Bankman-Fried, the founder of the popular exchange FTX, warned that some crypto exchanges are secretly bankrupt and may fail soon. Bankman-Frieds FTX and Alameda Research have already helped Blockfi and Voyager Digital because the 30-year-old billionaire says that sometimes you have to do what it takes to stabilize things and protect customers.
Bankman-Fried's FTX and Alameda Research offer lines of credit to specific crypto firms The current bear market to the crypto economy and the consequences of Terra Luna and UST occurred last month. The collapse of Terra arguably triggered a significant domino effect, with many exposed firms suffering major losses.
Many of the issues plaguing the crypto community stem from massive leverage and most of the contagion is tied to lenders and borrowers. Two weeks ago, crypto lender Celsius halted withdrawals, and 'people familiar with the matter' have said that Celsius is dealing with notable financial difficulties.
Bankman-Fried’s FTX and Alameda Research Provide Credit Lines to Specific Crypto Firms The crypto economy has been hit hard by the current bear market and Terra LUNA and UST fallout that took place last month. Terra’s downfall arguably started a significant domino effect that saw numerous exposed firms suffer sizable losses.
Many of the issues hurting the crypto community stem from massive leverage and most of the contagion effect is tethered to lenders and borrowers. Over two weeks ago, the crypto lender Celsius paused withdrawals, and ‘people familiar with the matter’ have said Celsius is dealing with notable financial hardships.
Blockfi, Specific Crypto, Crypto community, Celsius, Alameda, Terra LUNA, UST, Cryptocurrency, Crypto Firms, Voyager, Digital