FTX Founder and CEO, Sam Bankman-Fried, revealed in a recent interview with Forbes that some cryptocurrency exchanges are “secretly insolvent” as the market continues to decline.
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Although the billionaire declined to name those companies, he noted there are companies that are “basically too far gone and it’s not practical to backstop them.” He said:
“There are companies that are basically too far gone and it’s not practical to backstop them for reasons like a substantial hole in the balance sheet, regulatory issues, or that there is not much of a business left to be saved.”
While Bankman-Fried denied any merger talks with Robinhood, Forbes says the brokerage firm is still subject to acquisition.
In the meantime, FTX is reportedly considering acquiring a stake in BlockFi, shortly after it provided it with a $250 million revolving credit facility. According to sources close to the matter, the talks are still in progress and no equity agreement has been reached yet.
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