- According to the Wall Street Journal, Sam Bankman-Fried wants to raise money in order to pay clients back and make them whole again.
- According to the WSJ, SBF and a few other staffers spent the weekend reaching potential investors.
- Separately FTX also warned that it could have more creditors than its original estimate of 100,000 in an updated bankruptcy filing.
Sam Bankman Fried has been reaching out towards potential investors in an effort to raise money for FTX customers. The Wall Street Journal reported Tuesday.
After FTX Group filed for bankruptcy, the 30-year-old stepped down last week as CEO. Chapter 11 bankruptcyThe Journal reports that he spent the weekend with some remaining employees looking for financial commitments to help cover the $8 billion deficit.
It is unclear if there were any committed investors.
Even if SBF was able to raise sufficient capital to pay back its debts, negotiations with creditors would be required, as well as approval by the bankruptcy court.
The report also noted that the $8 billion required is far greater than the $1.9 billion that FTX has raised in its entire existence. FTX was helped by top Wall Street players such as Tiger Global in January to raise $400 million.
According to a new bankruptcy filing, FTX indicated that it may have had More than 1 million creditorsThe latest indicator of the extent of the fallout is this. FTX stated that it had more than 100,000 creditors in its initial filing a week ago.
FTX was only recently valued by venture capitalists and investors at $32 billion. It had more than 1 million users.
Last week, it was revealed that sister company Alameda Research, helmed also by SBF, had made a profit. Client assets can be used to fund risky betsFrom FTX. According to reports, the money that was transferred from FTX into Alameda is $8 billion.
