Sam Bankman-Fried, the CEO of FTX, reportedly requested emergency funding from investors on a November 9 investor call to cover an $8 billion shortfall.
According to reports, Sam Bankman-Fried has asked investors for $8 billion in emergency funding to make up for a shortfall brought on by the influx of withdrawal requests that his crypto exchange has been receiving lately.
The CEO reportedly made the request to investors in a call on November 9, where he discussed ways to help solve FTX’s financial problems, the Wall Street Journal (WSJ) reported, citing “people familiar with the matter).
As per the source, SBF wants to raise $3 billion to $4 billion in equity, and the exchange could raise additional debt to make up the difference.
The WSJ source claims that Bankman-Fried has additionally declared his intention to “make customers and investors whole” by using his personal wealth.
It is also believed that the FTX CEO blamed some of the company’s problems on what he called a campaign against the exchange, which led to a surge in investors looking to cash out out of fear of losing their investment, during the call.
According to a report from Reuters, FTX experienced withdrawals of about $6 billion in the 72 hours prior to November 8.
Additionally, reports claim that he said in the call that FTX wouldn’t be able to “settle withdrawals” because its collateral was losing value and couldn’t be liquidated.
According to a “person with direct knowledge of the matter,” according to a Nov. 9 report from Bloomberg, SBF allegedly told investors that the company would need to file for bankruptcy if it didn’t receive a cash infusion.