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☆ A top exec at OKX explains his call with Sam Bankman-Fried as FTX scrambled for a rescue - and why he couldn't give him a billion-dollar lifeline
▼ + stars: | 2022-11-19 | by ( Phil Rosen | ) www.businessinsider.com time to read: +4 min

In an interview with Insider, the director of financial markets for OKX recounted two phone calls he had with Sam Bankman-Fried before FTX collapsed. Bankman-Fried initially asked for $1 billion to $2 billion from OKX, but called back hours later asking for more. The exec advised Bankman-Fried to consult the CEO of Binance regarding the liquidity of FTX's native token, FTT. To save FTX, Bankman-Fried sought emergency capital from rival crypto exchanges, including OKX, which says it's the second-largest crypto exchange by spot trading volume. In an optimal scenario, OKX would've created a strategic partnership with FTX, Lai explained, since it strengthens the industry if big players could support one another.

SINGAPORE/LONDON, Nov 11 (Reuters) - Regulators are moving in on distressed crypto exchange FTX as it scrambles to raise billions in funds to stave off collapse, while its chief executive, Sam Bankman-Fried, faces heightened scrutiny. The Securities Commission of the Bahamas has frozen assets of FTX Digital Markets, an FTX subsidiary. FTX Australia called in administrators on Friday, the Australian Financial Review reported, citing a company statement. Bankman-Fried is under investigation by the U.S. Securities and Exchange Commission for potential securities law violations, Bloomberg reported, citing a source. This source said helping out FTX was the question for larger investors in FTX.

Meanwhile, the Securities Commission Of the Bahamas said on Thursday it had frozen assets of FTX Digital Markets, an FTX subsidiary. Broker Genesis Trading disclosed its derivatives business has approximately $175 million in locked funds on FTX. "We believe there is a 20-30% chance of a FTX rescue at best," said Matthew Dibb, chief operating officer of Singapore-based crypto investment manager Stack Funds. He is seeking the remainder from other funds, including current investors such as Sequoia Capital, the source added. It was not clear whether Bankman-Fried will be able to raise the funds he needs or if these investors would participate.

He is seeking the remainder from other funds, including current investors in FTX such as venture capital fund Sequoia Capital, the source added. Tether's chief technology officer, Paolo Ardoino, tweeted that it had "no plans to invest in or lend assets to FTX." FTX also got hit by the Bahamas Securities Commission, where the company is based, freezing assets of FTX Digital Markets "and related parties". In a tweet, FTX said it had reached a deal with Tron to establish a special facility that would allow clients to swap some crypto assets from FTX to external wallets. Bankman-Fried told investors that Alameda owes FTX about $10 billion, the Wall Street Journal reported.

☆ Sam Bankman-Fried asked us for a couple billion to bail out company, says OKX managing director
▼ + stars: | 2022-11-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSam Bankman-Fried asked us for a couple billion to bail out company, says OKX managing directorLennix Lai, OKX managing director, joins 'TechCheck' to discuss what FTX's Sam Bankman-Fried asked of the OKX managing director, whether SBF asked Lai for billions of dollars and how the company will not fall to a similar fate.

☆ Collapse of Binance-FTX deal could cause a contagion effect, says crypto exchange
▼ + stars: | 2022-11-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCollapse of Binance-FTX deal could cause a contagion effect, says crypto exchangeLennix Lai of Okx major cryptocurrency exchanges will be "fine" because of their low exposure, but trading firms that previously traded on FTX could be affected.

☆ Tron founder Justin Sun ready to give billions in aid to FTX - Bloomberg
▼ + stars: | 2022-11-11 | by ( ) www.reuters.com time to read: 1 min

Nov 11 (Reuters) - Justin Sun, founder of the crypto token Tron, said he was prepared to provide distressed cryptocurrency exchange FTX with billions in aid, according to a tweet by a Bloomberg News reporter on Friday. loadingThe funding is subject to due diligence and is a "good moment to show unity in the crypto industry", the tweet said, citing Sun. Regulators froze some assets of FTX and industry peers raced to limit losses on Friday amid worsening solvency problems at the firm and heightened scrutiny of its chief executive, Sam Bankman-Fried. Bankman-Fried has discussed raising $1 billion each from Sun, rival exchange OKX and stablecoin platform Tether, a source who has direct knowledge of the matter told Reuters on Thursday. Reporting by Manya Saini in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

Bankman-Fried said he was in talks with "a number of players" in the crypto sector, including Justin Sun who is the founder of crypto token Tron, after a potential rescue deal with larger rival Binance fell apart. He also said his firm Alameda Research, which sources have said was partly behind FTX's problems, was winding down trading. FTX's native token, FTT , is down more than 90% this week and was attempting to steady around $3.50. Another exchange, OKX, said it had been approached earlier in the week by Bankman-Fried, who described liabilities of $7 billion that needed covering fast. Bankman-Fried said FTX.US, the U.S. operations of the exchange, however, had not been financially impacted.

☆ Sam-Bankman Fried told OKX FTX has liability of $7 bln - OKX director
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +1 min

[1/2] FTX logo is seen in this illustration taken, November 8, 2022. The appeal for cash injection has come as FTX was facing a $7 billion total liability, said Lai, citing Bankman-Fried's comment made in the call. FTX has approached OKX for a deal as it needed to survive through a slew of withdrawal requests, Lai said, citing the several calls he had with Bankman-Fried on Nov. 8. "If FTX does not get immediate cash injection, they would go bankrupt," said Lai, he recalled their conversation during a later call at 7 a.m. Hong Kong time. "Sam said he was talking with a few other potential investors, so he needed an urgent decison from us," he said.

He is seeking the remainder from other funds, including current investors in FTX such as venture capital fund Sequoia Capital, the source added. Bankman-Fried told investors that Alameda owes FTX about $10 billion, the Wall Street Journal reported. FTX had lent more than half of its customer funds to Alameda, the newspaper said. The U.S. securities regulator is investigating FTX.com's handling of customer funds and crypto-lending activities, according to a source with knowledge of the inquiry. Canada's Ontario Teachers Pension Plan, Tiger Global and Japan's Softbank are also FTX investors.

☆ EXCLUSIVE Bankman-Fried seeks $9.4 bln package for FTX rescue-sources
▼ + stars: | 2022-11-10 | by ( Anirban Sen | ) www.reuters.com time to read: +1 min

REUTERS/Dado Ruvic/IllustrationNEW YORK, Nov 10 (Reuters) - Sam Bankman-Fried is seeking to put together a rescue package of up to $9.4 billion for his troubled cryptocurrency exchange FTX, a person with direct knowledge of the matter said on Thursday. Bankman-Fried is discussing raising about $1 billion from crypto-token Tron founder Justin Sun, $1 billion from cryptocurrency exchange OKX, $1 billion from cryptocurrency firm Tether and $2 billion from a consortium of investment funds, the source said. One of the investors in talks with FTX is Daniel Loeb's hedge fund Third Point, according to the source. Bankman-Fried has had little progress so far in putting the rescue package together, according to the source. FTX, Sun, OKX and Third Point did not immediately respond to requests for comment.

FTX head Sam Bankman-Fried said he was "exploring all the options", but fading hopes for rescue left FTX teetering. A message on the FTX website said: "FTX is currently unable to process withdrawals. "The dagger will continue to hang over the crypto market, as long as the outlook of FTX's fate remains unclear." 'CONFIDENCE CRISIS'There are also early signs that the fallout could spread beyond crypto markets, with jittery stockmarkets sliding on Wall Street overnight. Most crypto players remain bullish about the long term, but are braced for further falls in the near future.

☆ Morning Bid: Red wave
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +1 min

The "red wave", however, showed up in markets. The S&P 500 (.SPX) fell 2% on Wednesday and the dollar seemed to catch a bid from a wave of cryptocurrency selling. Bonds rallied with the risk-averse mood, which opens the door for disappointment as U.S. inflation data comes into focus later on Thursday. Share markets fell around Asia, with MSCI's broadest ex-Japan index (.MIAPJ0000PUS) down 1%. European futures fell 0.6%.

☆ Crypto whizkid Justin Sun says he's working with FTX to find a 'solution' after Binance dumped its rescue deal
▼ + stars: | 2022-11-10 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

Crypto whizkid Justin Sun said he and FTX are 'putting together a solution' after the Binance deal collapsed. FTX needs $8 billion and bankruptcy is likely without more capital, its CEO Sam Bankman-Fried said. Binance dumped its takeover deal for FTX saying the issues were beyond its ability to help. But he didn't say whether this would rescue FTX as a company or only provide support around the Tron-related tokens on the exchange. Bankman-Fried told FTX employees he was exploring all options for the company after the Binance deal collapsed, Reuters reported Wednesday.

☆ FTX approached crypto exchange OKX about deal before Binance agreed to possible takeover
▼ + stars: | 2022-11-09 | by ( Hannah Lang | ) www.reuters.com time to read: +1 min

[1/3] FTX logo is seen in this illustration taken, November 8, 2022. REUTERS/Dado Ruvic/IllustrationNov 9 (Reuters) - FTX CEO Sam Bankman-Fried approached cryptocurrency exchange OKX Monday morning about a deal before he announced Tuesday that Binance had signed a nonbinding agreement to acquire FTX in the face of an apparent liquidity crunch, an OKX spokesperson said. The pressure on FTX came in part from Zhao, who had tweeted on Sunday that Binance would liquidate its holdings of the rival's token, called FTT, due to unspecified "recent revelations." OKX leadership encouraged Bankman-Fried to “work things out with CZ,” arguing that it would be better if CZ agreed not to sell Binance’s FTT holdings “instead of making a monopolistic sale,” the spokesperson added. Neither OKX or its sister exchange OKCoin, which is available to U.S. customers, had any exposure to FTX or Bankman-Fried's crypto trading firm Alameda Research.

A representative for FTX did not immediately respond to requests for comment on the deal or the SEC investigation. FTX and Binance did not disclose the terms of their agreement, and markets face fresh uncertainty over whether it will proceed. REUTERS/Dado Ruvic/Illustration 1 2Prior to the Binance proposed deal, Bankman-Fried approached cryptocurrency exchange OKX on Monday morning about a deal, but the exchange declined to move forward. "It has been a truly a devastating year for the industry," said Ryan Wong, a senior researcher at crypto exchange Huobi. "This could be a major source of risk to crypto markets," Lai wrote.

☆ Binance is walking away from its deal to rescue Sam Bankman-Fried's collapsed FTX crypto exchange, citing issues 'beyond our ability or control to help'
▼ + stars: | 2022-11-09 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

Crypto exchange Binance walked away from a deal to acquire rival FTX, reports said Wednesday. The issues at the exchange founded by Sam Bankman-Fried "are beyond our control or ability to help," Binance said. Binance CEO Changpeng Zhao said FTX asked for help amid a "significant liquidity crunch". "In the beginning, our hope was to be able to support FTX's customers to provide liquidity, but the issues are beyond our control or ability to help," Binance said. Before striking a deal with Binance, FTX had sought help from other large exchanges Coinbase and OKX but it was turned down, according to the Coindesk report.

☆ As chaos continues with Twitter under Musk, advertiser patience is starting to wear thin
▼ + stars: | 2022-11-02 | by ( Lindsay Rittenhouse | Lara O'Reilly | ) www.businessinsider.com time to read: +5 min

Advertisers weigh whether to pull ad spend from Twitter or stay. He plans to hold a virtual meeting with advertisers this Thursday but patience is wearing thin. But the Twitter team is in such disarray, attendees aren't clear who would be on the call to settle advertisers' nerves. A separate source said Meg Haley, Twitter VP of revenue product specialists, has been taking charge of conversations concerning advertiser partnerships in the interim. Some in the advertising community also question how committed Musk's Twitter will be to advertising in the long-term.

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