FTX Could Bankrupt Like Voyager and Celsius? This is Sam Bankman-Fried's confession!

The FTX crypto exchange went bankrupt. (Photo; Doc. Invencoin)

JAKARTA – The condition of the FTX crypto exchange has become a hot news topic in recent days. The reason is, the crypto trading company founded by Sam Bankman-Fried (SBF) has the potential to go bankrupt and have a big impact on the crypto industry as a whole.

As Bloomberg reports from an unnamed source, SBF has informed investors that its FTX crypto exchange is facing a shortfall of up to $8 billion and needs $4 billion in funding to maintain the company. FTX is trying to raise rescue financing in the form of debt, equity, or a combination of the two.

"Sam Bankman-Fried told FTX investors that the company needs a cash injection, or else the company needs to file for bankruptcy," wrote Bloomberg Australia, on November 9, 2022, via his official Twitter post @BloombergAU.

On November 9, after discovering an uncontrollable financial vulnerability, Binance decided to reject the acquisition with FTX. According to the SBF, the company is forced to face the risk of filing for bankruptcy without investors.

If this turns out to be true, then FTX will be the next name to appear on the list of crypto companies that went bankrupt in the last quarter such as Celsius, Voyager, BlockFi, and other collapsed crypto companies.

SBF's admission of its company's deep financial losses and limited options reflects the uncertain fate of FTX and its customers. If you have to file for bankruptcy, it means that FTX customers will suffer losses.

As reported by Coincu, in addition to the risk of bankruptcy, the exchange is also facing investigations from two US law enforcement agencies, namely the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). The two legal entities could potentially uncover breaches involving client funds, as well as their ties to other parts of SBF's crypto empire, including trading firm Alameda Research.

The crisis experienced by FTX and its partner company Alameda Research has had a major impact on the crypto industry in general. This dragged down the price of Bitcoin and altcoins. As of writing, Bitcoin is trading at $16,000 per BTC.