The notorious crypto exchange FTX CEO Sam Bankman-Fried stated that he and the company still have a “billion dollars” to back a struggling crypto firm that could trigger destabilization in the digital asset industry.
While Crypto winter is knocking on the door of the market, Bankman-Fried came forward many times to provide a helping hand to soaring digital asset platforms. Most of these platforms suffered through liquidation crises or contagions.
“We’re starting to get a few more companies reaching out to us,” Bankman-Fried said in an interview. Those firms are generally not in dire situations, though some smaller crypto exchanges may still fail, he said, adding that the industry has moved beyond “other big shoes that have to drop.”
Bankman-Fried’s other crypto trading firm, Alameda Research granted $200 million to crypto lender Voyager Digital in cash as well as a stablecoin revolving credit facility and a facility of bitcoin.
Voyager Digital faced losses from exposure to crypto hedge fund Three Arrows Capital. After that Voyager Digital filed for Chapter 11 bankruptcy.
In another settlement, FTX provided a $250 million revolving credit facility to crypto lender BlockFi in June. According to the latest announcement, the deal also empowers FTX with the right to purchase in certain conditions.
Bankman-Fried stated that with the flow of cash he wants to protect customer assets and stop contagion from bouncing through the system.
“Having trust with consumers that things will work as advertised is incredibly important and if broken is incredibly hard to get back,” he said.