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$1 Billion "Crypto Bailout" Attempted by FTX Boss, Here's Outcome

Wed, 08/31/2022 - 15:27
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Yuri Molchan
Head of FTX crypto trading giant has attempted to save sinking crypto businesses during Bitcoin crash, here's outcome
$1 Billion "Crypto Bailout" Attempted by FTX Boss, Here's Outcome
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In a recent article, Bloomberg shared that the chief of the FTX exchange, billionaire Sam Bankman-Fried, had made an attempt to bail out some sinking crypto-related businesses. This cost his company roughly $1 billion, and now he says that not all of these investments are going to be profitable.

Bankman-Fried spoke about this during the "David Rubenstein Show: Peer-to-Peer Conversations."

"Mixed results" of FTX investments

According to the CEO of FTX, he decided to invest approximately one billion USD into various crypto companies that began sinking after Bitcoin all of a sudden started plunging heavily, pulling the entire cryptocurrency market along with it.

He believes that some of the companies they invested in might bring them some profit; however, some most likely will not do that. One of these companies, that got a loan from Voyager Digital Ltd (founded by Bankman-Fried), Alameda Research, went broke in July despite getting $485 million from Voyager a month earlier.

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Another company that got a loan from FTX, or rather its U.S.-based branch, was BlockFi. It agreed to take a $400 million credit along with getting an option to buy this firm. BlockFi had a strong team and a running functional business, according to Bankman-Fried, and so they just needed money to keep working efficiently in the long run.

The billionaire stressed that his intention was not merely to make money on these deals but to backstop companies that were suffering from the current bearish crypto market.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.