FTX bailed out Voyager Digital by extending a kind of two-piece line of credit.
FTX acquired Canadian exchange Bitvo in June.
Sam Bankman-Fried, CEO of crypto derivatives exchange FTX, said on CNBC’s Squawk Box that the company has at least $1 billion available to be used for mergers, acquisitions, and bailouts.
Bankman-Fried stated:
“You get to definitional issues here, of how much should we really feel comfortable deploying. Saying that there’s another ballpark billion that is completely unencumbered, certainly will get you within a factor of two of the right answer.”
Help During Desperate Times
To weather the market collapse, the exchange has been instrumental in rescuing cryptocurrency ventures. Moreover, Bankman-Fried emphasized the difficulty of the decisions involved in executing bailouts and acquisitions.
In one such case, FTX bailed out Voyager Digital by extending a kind of two-piece line of credit, as stated by Bankman-Fried. The initial amount, $70 million, was completely available for use right away. The CEO stated they knew they might lose it.
According to Bloomberg, FTX acquired Canadian exchange Bitvo in June. And considered aiding cryptocurrency lender Celsius before backing out of the transaction. Moreover, on the other hand, consumers have been warned about cryptocurrency exchange FTX. By the UK’s Financial Conduct Authority (FCA) due to the exchange’s illegal presence on UK territory.
The Financial Conduct Authority (FCA) issued a statement saying that “almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorized or registered by us” and that FTX “is not authorized by us and is targeting people in the UK.”