Sam Bankman-Fried told FTX.com investors on Wednesday that without a cash injection, the company would need to file for bankruptcy, according to a person with direct knowledge of the matter.
Before Binance said it was pulling out of its takeover offer, Bankman-Fried informed investors his crypto exchange faced a shortfall of up to $US8 billion, said the person, who requested anonymity discussing private talks. FTX is attempting to raise rescue financing in the form of debt, equity, or a combination of the two, the person said.Bankman-Fried’s acknowledgement of his firm’s financial hole and limited options reflects the uncertain fate of FTX and its clients.
Still, Bankman-Fried remained defiant. He repeatedly told investors during a conference call on Wednesday afternoon, as speculation built that Binance wouldn’t go through with the deal, that it was simply not true that Changpeng Zhao was walking away from the takeover, the person said.
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