The proposed merger between Bankman-Fried and rival Binance CEO Changpeng Zhao was the second emergency rescue in the world of cryptocurrencies this year
After a contract with cryptocurrency exchange Binance fell through on Wednesday, FTX CEO Sam Bankman-Fried notified staff that he was considering all possibilities for his company.
The proposed transaction between Bankman-Fried and rival Binance CEO Changpeng Zhao was the latest emergency rescue in the world of cryptocurrencies this year, as investors fled riskier assets in the face of rising interest rates.
The bitcoin market has dropped by around two-thirds from its peak of $1.07 trillion. “As a result of business due diligence, as well as the latest news stories surrounding mishandled client cash and purported US agency investigations,” Binance said in a statement on Wednesday.
It leaves Bankman-Fried, 30, with fewer options after previously providing lifelines to other floundering digital asset businesses.
“I’m working on future steps as rapidly as I can. I wish I could provide more clarification than I can “In a note to FTX staff reviewed by Reuters, Bankman-Fried, who is from California but lives in the Bahamas where FTX is domiciled, wrote Bankman-Fried, whose fortune was valued at $17 billion by Forbes in September, gained billions arbitraging cryptocurrency or virtual currency prices in Asia beginning in 2017 before joining FTX.
Bankman-Fried stated in the staff message that his priorities were to safeguard customers and assist workers and investors in any way he could. “I’ll keep fighting for those (goals) as best I can for as long as it’s appropriate for me to do so. I’m looking at all of my possibilities.”
Bankman-Fried also informed staff that Binance had not previously indicated concerns about the transaction. “I’m deeply sorry that we ended up here, and for my part in it,” he wrote. “That’s on me, and only me, and it stinks, and I’m sorry, which doesn’t make it any better.”
“I will post many more updates tonight, I promise,” Bankman-Fried said in a later message to workers, which Reuters obtained.
A spokesman for FTX did not reply quickly to a request for comment. US officials are also looking into FTX.com’s management of customer funds as well as its crypto-lending activities.
According to a person familiar with the investigation, the US Securities and Exchange Commission is looking into FTX.com’s management of customer funds during a liquidity crisis, as well as its crypto-lending activities.
