Crypto exchange giant FTX has a “few billion” on hand to support the struggling firms that might further destabilize the crypto market.
According to a report by Reuters, the CEO of the company, Sam Bankman-Fried or SBF, has revealed that the company still has funds to shore up firms suffering from serious liquidity crises. He believes that the worst of the liquidity crunch has passed.
During an interview, SBF said that the exchange is starting to get a few more firms reaching out. These companies are not in a dreadful situation, though some smaller firms may still go down. He added that the crypto industry has moved beyond “other big shoes that have to drop.”
FTX aims to protect users
The California-based entrepreneur is known for supporting and acquiring crypto companies. FTX has become an angel in recent weeks, throwing lifelines to crypto companies that have faltered as the market enters the winter season.
SBF’s crypto trading company Alameda Research had provided the crypto lending platform Voyager Digital with a $200 million credit facility. Notably, the crypto lender has been seriously hit by the current market condition and faced losses from exposure to crypto hedge fund Three Arrow Capital. As TheCoinRise reported, Voyager filed for bankruptcy this Wednesday. Moreover, FTX also helped crypto lender BlockFi with a $250 million credit facility. The latter announced on Friday that it is giving the former the right to acquire it based on certain performance criteria.
SBF said that he aimed to protect customer assets and stop these crises from reflecting back through the system. He added:
“Having trust with consumers that things will work as advertised is incredibly important and if broken is incredibly hard to get back.”
Notably, the biggest cryptocurrency, Bitcoin is down to the $20,000 zone from its November all-time high at $69,000.