The founder of FTX, the cryptocurrency exchange that is on the verge of bankruptcy, with massive withdrawals and a deficit estimated at close to $8 billion, has announced that it is attempting a capital raise.
In a memo to employees, Sam Bankman-Fried said he is making efforts to raise capital and is in talks with Justin Sun, founder of crypto token Tron, “without wanting to suggest anything about the chances of success,” according to Reuters.
In the memo, which the agency has obtained, it notes that it will proceed with a capital raise next week with “potential new investors.”
Bankman-Fried told exchange employees on Wednesday that he was considering all available options after the collapse of the deal with Binance. “Binance obviously never planned to move forward with the deal,” he said in the memo today.
The developments with FTX and the collapse of the FTT currency have caused major shocks across the crypto market, with Bitcoin losing 27%, Ethereum 32%, BNB 35%, Solana 64%, Polygon 38%, in a matter of hours.
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