FTX offered US cryptocurrency lender BlockFi a $250 million revolving credit facility in June.
Sam Bankman-Fried, chief of one of the largest cryptocurrency exchanges, FTX, announced that he and his company still have a “few billion” on hand to wash away the struggling firms that could further destabilize the digital asset industry, however” the worst of the liquidity crunch has likely passed.”
Bankman-Fried is from California but resides in the Bahamas, where FTX is founded. It has evolved as crypto’s white knight in recent weeks, tossing lifelines to digital asset platforms, which have wavered as cryptocurrency prices have cratered. Bitcoin is down around 70 percent from its all-time November high of approximately $69,000.
“We’re starting to get a few more companies reaching out to us,” Bankman-Fried announced in an interview. “Those firms are generally not in dire situations, though some smaller crypto exchanges may still fail,” he explained, adding that the industry has moved beyond “other big shoes that have to drop.”
Bankman-Fried’s crypto-trading firm, Alameda Research, provided crypto-lender Voyager Digital a $200 million cash and stablecoin revolving credit facility, and a facility of Bitcoin, as the company handled losses from exposure to crypto hedge fund Three Arrows Capital. On Wednesday, Voyager filed for bankruptcy.
Furthermore, in June, FTX handed US cryptocurrency lender BlockFi a $250 million revolving credit capacity and on Friday declared a deal providing FTX the chance to purchase it based on specific performance triggers.
“The goal of the bailouts was to protect customer assets and stop contagion from ricocheting through the system,” Bankman-Fried announced.