- Insider interviewed the OKX director for financial markets. He spoke out about two phone conversations he had before FTX collapsed.
- Bankman-Fried initially requested $1 billion to $2 billion from OKX. However, he called back hours later to ask for more.
- Bankman-Fried was advised by the exec to consult Binance’s CEO regarding liquidity of FTX’s native token, FTT.
Details about FTX’s fall continue to emerge through court filings as well as tweetstorms. The same goes for details about Sam Bankman Fried’s search for a rescue plan in the days before his firm’s November 11th attack. Bankruptcy announcement.
Changpeng Zhao (CEO Binance) tweeted on November 6th that Binance was liquidating $531million of FTX’s native token FTT. This triggered a liquidity crisis for Bankman-Fried’s company. Bankman-Fried used emergency capital from other crypto exchanges to save FTX. OKX claims it is the best. second-largest crypto exchange by spot trading volume.
Lennix Lai was the director of financial market for OKX on November 8th when she received two phone calls by Bankman-Fried.
“The very first call from Sam he said that everything was under control, but they may need cash, one to two trillion dollars max in short term credit in exchange of FTT value or equity for FTX,” Lai stated to Insider.
He said that he would be happy to assist and didn’t decline the request. Lai was traveling late at night so the phone call was at midnight. Lai planned to sleep and review the details with OKX.
He thought it would take him several days to review options. He also remembered that Bankman-Fried seemed calm, while at the same time admitting that he was responsible for the situation. Lai said that OKX and FTX would have formed a strategic partnership in an ideal scenario. It strengthens the industry if large players can support each other.
A couple of hours later, Bankman Fried called with even more anxiety.
Lai stated that he had spoken to Lai about how they were in a critical situation and had only been able to get a few hours. We didn’t understand what that meant. Additionally, they were referring to a lot more billions [of dollars]It was so difficult for us.”
He didn’t refuse the offer of the 30-year-old founder of FTX, however he was unable to immediately agree on a billion-dollar bailout and knew that a bailout could not be achieved without Binance’s Zhao.
Lai realized that FTX was reliant on FTT and advised Bankman-Fried consult Zhao to help stabilize the token. He said that rebuilding trust in FTT could allow the exchange to save time.
Binance eventually agreed to the terms hours later. acquire FTX. However, the deal was canceled within hours and FTX collapsed quickly.
Cryptography requires greater transparency
Lai hopes that crypto exchanges will be more transparent in the months ahead. OKX, like other competitors, is already under more scrutiny by regulators. However, the company is taking a proactive approach.
Lai reports that OKX was first to announce that it will provide proof to third-party auditors of its reserves.
The market will need to settle down for a while, but eventually the sector will be stable. Momentary Lehman BrothersThe crypto market will prosper.
“It is good for the sector, in the manner that some exchanges start cleaning up the mess, good in terms transparency, stability,” said he. “I am certain that there will be greater transparency in the space.”
