Crypto Exchange FTX Has 'Billions' to Support Industry - Bankman-Fried


 Sam Bankman-Fried, head of FTX, one of the largest cryptocurrency exchanges, said he and his company still have \'billions\' on hand to back what could further disrupt the digital asset industry. Bitcoin is down about 70% from its all-time high of nearly $69,000 in November.


Bankman-Fried's cryptocurrency trading firm Alameda Research has extended a $200 million cash and stablecoin revolving credit line and a bitcoin line to cryptocurrency lender Voyager Digital (VOYG.TO) Voyager filed for bankruptcy protection on Wednesday. The firm suffers from cryptocurrency hedge fund Three Arrows loss of capital.


FTX extended a $250 million revolving line of credit to U.S. cryptocurrency lender BlockFi in June. The goal of the bailout is to protect customers' assets and prevent contagion from bouncing back through the system. In January, FTX launched FTX Ventures, a $2 billion venture capital fund focused on investing in digital assets.


Bankman-Fried has made billions arbitraging cryptocurrency prices in Asia since 2017. He has said once or twice that he backs failing crypto companies with his own money when FTX makes no sense to do so. 'FTX has shareholders and we have a responsibility to do the sensible thing from them,' he said.


Bankman-Fried also announced in May that he personally took a 7.6% stake in Robinhood Markets Inc (HOOD.O) to take advantage of the trading app's weak share price. Forbes estimated Bank man's net worth at around $24 billion this year, but Bloomberg’s Billionaires Index said that number had halved due to the cryptocurrency crash.


Bankman-Fried started his financial career at quantitative trading firm Jane Street, then founded cryptocurrency trading firm Alameda Research, and in 2019 founded FTX. He has announced that he will give away 99% of his wealth and has the ability to spend up to $100 million in support of candidates through 2024.


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