Before the collapse of FTX, founder Sam Bankman-Fried frantically attempted to cut a deal with Binance and worked the phones to raise more capital. Bankman-Fried quickly went from everything is fine, to we need a lot of money to keep things going. In the end, FTX collapsed and filed for bankruptcy protection, and Bankman-Fried was replaced as CEO. It was revealed today that creditors may number up to one million as thousands of users have seen their funds locked on the shuttered exchange.
Today, WSJ.com is reporting that Bankman-Fried is STILL trying to raise money. According to the report, Bankman-Fried spent the weekend calling potential investors under the belief he could still make investors/creditors whole. While it is not surprising that potential investors would take the disgraced CEOs calls, the report anyone committed to providing funds.
The damage done by the failure of FTX is tragic for investors. The impact on the broader crypto markets is incalculable as former advocates go quiet – and the chance for Congressional action to regulate crypto markets is probably on pause.
