Report: FTX warns against bankruptcy. It can’t plug an $8 billion deficit

• According to Bloomberg, Sam Bankman-Fried, CEO of FTX, told investors that there is a potential shortfall up to $8 billion.
• FTX requires emergency funding, or it will go bankrupt, Bankman-Fried stated to investors via Bloomberg.
• Binance had previously stated plans to acquire FTX. However, Binance reneged on that deal.

Sam Bankman Fried, CEO of the troubled crypto exchange FTX, warned investors that it could face bankruptcy if it doesn’t receive emergency funding. BloombergThe matter was reported by the reporter on Thursday.

Bloomberg reported that FTX was facing a financial crisis of up to $8billion and was seeking to raise $4billion to keep its operations afloat. 

Bankman-Fried stated to investors that “I f—ed,” according to media outlets.

Bankman-Fried called investors before Binance pulled out from a plan to purchase FTX. Bloomberg reported that he repeated to investors that Binance wouldn’t give up on the deal.

BinanceIt canceled its acquisition plan for Wednesday Citing issues“Beyond Our Control or Ability to Help”

There may be an additional twist, however. Justin SunFounding founder of Tron cryptocurrency network tweeted late WednesdayHe said that he and his colleagues are working together to find a solution with FTX. Sun was also retweeted and reposted by Bankman Fried

Sun said in a Twitter thread that “the ongoing liquidity crunch is, despite being short-term in nature, harmful to the industry development, and investors alike.” “My team has worked around the clock in an effort to avoid further deterioration.”

—H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 10, 2022

Binance’s U.S. turn on the acquisition was preceded by a bizarre sequence of events. It all started over the weekend with a Twitter feud between Bankman and Fried. Changpeng Zhao, Binance CEO. Prior to any acquisition talk, Zhao had tweeted that Binance would be liquidating all its FTT tokens — a crypto token native to FTX — due to “recent revelations.” 

Although he didn’t express his concerns at that time, he did say that he was concerned about the future. November 2 CoinDesk reportsFTX’s liquidity position was a source of market fear.

On Monday, Bankman-Fried retorted at Zhao by tweeting: “A competitor is trying to take after us with falserumors,” according to media reports. Bloomberg and Reuters.

But the damage had been doneAnd the tiff weighed on market sentiment, sparking a selloff and a rush for withdrawals. In the 72 hours that preceded Tuesday morning’s opening, FTX had withdrawn approximately $6 billion. ReutersThis report cites a Bankman Fried message that was sent to staff. 

Zhao and Bankman-Fried then seemed to have made up. The deal was announced by the former with Binance. Zhao said Binance “signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch.”

The volatility hasn’t been good for the crypto market. Bitcoin and all other cryptocurrenciesWednesday’s fall was due to Binance’s announcement of its intention to walk away from the acquisition FTX. 11.48 p.m. ET: Bitcoin and Ether both fell by approximately 11% in the past 24 hours according to CoinMarketCap, extending a crypto slump this year.

FTX did in fact not respond immediately to Insider’s request of comment, which was sent outside normal business hours.