“I’m Sorry; I Screwed Up.” $4 Billion Is Required For Sam Bankman-Fried, Fast.

Sam Bankman-Fried is attempting to raise $4 billion to save FTX after rival Binance withdrew its last-minute offer to acquire the failing cryptocurrency exchange.
According to independent sources from Bloomberg and the Financial Times, Bankman-Fried allegedly told investors on Wednesday night that FTX is in danger of bankruptcy if the business doesn’t obtain at least $4 billion to stay stable and is facing a funding gap of up to $8 billion. Bankman-Fried claimed that FTX is prepared to accept the funding in any form, including debt, equity, or a combination of the two.

When the bank run on the cryptocurrency exchange was caused by Binance CEO Chengpeng Zhao selling his $2 billion position in the FTX exchange’s native token, venture capital firm Sequoia Capital informed investors that it would be completely writing off its prior $214 million investment in the company.

In a message to investors in its fund, Sequoia stated that “a cash shortage has generated solvency risk for FTX in recent days,” according to the Financial Times.

Other notable platform sponsors, including as BlackRock, Canada’s Ontario Teachers’ Pension Plan, Singapore’s Temasek, SoftBank, and hedge fund Lightspeed Venture Partners, have not indicated whether they are prepared to step in and help preserve the failing cryptocurrency exchange.

If someone could send SBF a few billion, he would be “unbelievably grateful.”

Sam Bankman-Fried has been repeating the same three words over the past few days ever since the company started to decline: “I f****d up.”
In addition to telling investors on the call that he “f***ed up,” Bankman-Fried reportedly issued a note to all of his staff on Tuesday morning saying “I’m sorry, I f***ed up,” according to Reuters. He added that he would be “extremely, unbelievably grateful” if investors could assist.

Justin Sun, the creator of the Tron cryptocurrency network and the ambassador of Grenada to the World Trade Organization, tweeted late on Wednesday that he and his colleagues were “working together a solution with FTX to establish a road ahead,” which is encouraging for Bankman-Fried. However, Sun assured his Twitter followers that his team was “working around the clock to avoid further deterioration,” adding that “the ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike.” Sun did not provide specifics on the type of financing deal they were arranging.

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Meaning of an FTX Collapse

FTX is the second-largest cryptocurrency corporation, and Bankman-Fried was widely regarded as the industry’s “golden boy,” thus this story stands out even though it may appear to be the standard fraud for which the crypto market has a well-deserved reputation.

Only six months prior, Bankman-Fried welcomed Tony Blair and Bill Clinton at a meeting in the Bahamas, and Fortune featured a profile on the young businessman on the cover of its August/September issue.

However, as FTX’s future viability came into question, this joy faded. According to the Bloomberg Billionaire Index, Bankman-Fried, whose previous net worth was $26 billion, has had his personal net worth decrease 94% in one day to $991.5 million.

The price of cryptocurrencies has also plummeted due to this loss of faith. After Binance confirmed earlier speculations that it would pull out of the arrangement, Bitcoin fell 13% to $15,840, hitting a two-year low. Earlier in the week, the cost of Bitcoin was over $20,000.

A “cascade of margin calls,” according to JPMorgan, is already in motion, and the cryptocurrency markets will experience weeks of deleveraging, which may drive Bitcoin as low as $13,000.

It appears likely that a new cascade of margin calls, deleveraging, and crypto company [and] platform failures is beginning, similar to what we saw last May [and] June following the collapse of Terra, according to JPMorgan analysts. “Given the size and interlinkages of both FTX and Alameda Research with other entities of the crypto ecosystem…

Furthermore, owners of cryptocurrencies on the FTX trading platform may have their own money at risk. FTX customer cash could be subject to seizure by an administrator for liquidation to pay creditors from the insolvency estate, Sam Bankman-Fried said in a tweet that was later quietly removed.

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But in the end, one person comes out on top. Following Justin Sun’s announcement that he was considering measures to salvage FTX, the value of his token TRX increased by approximately 4,000% on the FTX platform.

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