According to the Wall Street Journal, FTX CEO Sam Bankman-Fried (SBF) asked investors for emergency funds to make up for an $8 billion shortfall during an investor conference call on November 9.
The Wall Street Journal cited sources as saying that SBF made the request to investors on a conference call, outlining ways to help FTX resolve its financial woes. SBF said it was seeking to raise $3 billion to $4 billion in equity to make up the shortfall.
The source also noted that SBF said he would use his personal wealth to solve problems for clients and investors. A Reuters report on the 8th showed that FTX withdrawals amounted to approximately $6 billion in the 72 hours ending November 8. On November 9, the FTX website posted a notice stating that "Withdrawals are currently unable to be processed. We strongly advise against deposits."
SBF repeatedly stated to investors during the conference call that "FTX will not be able to solve the withdrawal problem because the value of the collateral has declined and cannot be liquidated."
Meanwhile, SBF told investors that without an infusion of cash, the company would need to file for bankruptcy, Bloomberg reported, citing people familiar with the matter. Bloomberg sources also confirmed claims that FTX is seeking to raise rescue financing through a combination of debt and equity to avoid liquidation.
This article News: SBF needs US$8 billion for emergency relief. Without new capital injection, FTX will need to file for bankruptcy. First appeared on Blockchain.