FTX CEO Sam Bankman-Fried.
(Photo by Jabin Botsford/The Washington Post via Getty Images)
Crypto whizkid Justin Sun said he and FTX are ‘putting together a solution’ after the Binance deal collapsed.
FTX needs $8 billion and bankruptcy is likely without more capital, its CEO Sam Bankman-Fried said.
Binance dumped its takeover deal for FTX saying the issues were beyond its ability to help.
Justin Sun, the crypto whizkid behind Tron, has said he’s working with FTX to find a “solution” to troubles at the exchange, which is on the brink of collapse.
The move comes after Binance walked away from a potential deal to buy FTX on Wednesday, saying in a tweet that the rival crypto exchange’s issues were “beyond our control or ability to help”.
Before Binance backed away, FTX’s CEO Sam Bankman-Fried told investors Wednesday that the company faces bankruptcy if it doesn’t get more capital, saying it has a “shortfall” of up to $8 billion, per Bloomberg.
Sun, the founder of the Tron cryptocurrency network, said in a late Wednesday tweet that he was working on a “pathway forward” with FTX. But he didn’t say whether this would rescue FTX as a company or only provide support around the Tron-related tokens on the exchange.
“Further to my announcement to stand behind all Tron token (#TRX, #BTT, #JST, #SUN, #HT) holders on #FTX, we are putting together a solution together with #FTX to initiate a pathway forward. @FTX_Official,” he said in a post retweeted by Bankman-Fried.
“The ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike,” Sun added.
“My team has been working around the clock to avert further deterioration,” he added, but didn’t spell out any details.
Chinese-born Sun’s high profile in the crypto world comes from his activities beyond founding blockchain ecosystem Tron and earlier, buying BitTorrent. He bailed on a $4.6 million lunch with Warren Buffett and clashed with Disney over the TRON trademark.
Bankman-Fried told FTX employees he was exploring all options for the company after the Binance deal collapsed, Reuters reported Wednesday. In his search for support as customers rushed to withdraw funds from FTX, he asked crypto exchange OKX for a capital infusion of $2 billion to $4 billion, per Reuters,