FTX in talks to raise funds amid spending spree to prevent contagion News ▸ FTX ▸ Investments
FTX in talks to raise funds amid spending spree to prevent contagion
FTX and its US division are reportedly seeking to raise new funds at the same valuation of January, 2022.
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Updated: Jul. 20, 2022 at 7:03 pm UTC
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Sam Bankman-Fried-led FTX and its US division FTX US are in talks to raise new funds, Bloomberg News reported July 20.
The crypto exchange reportedly seeks to raise an amount at the same valuation as its Series C fundraising in January when FTX raised $400 million at a $32 billion valuation and FTX US raised $400 million at an $8 billion valuation.
Bloomberg stated that an FTX spokesperson declined to comment on the fundraising talks.
Preventing crypto contagion
Reports of FTX’s search for new funding come amid the exchange’s efforts to stop the contagion in the crypto market.
FTX US extended a $400 million credit line to BlockFi in the thick of the crypto winter. The credit facility came with an option for the exchange to purchase the distressed company for $240 million, depending on its performance.
SBF’s Alameda Ventures also gave Voyager Digital a $200 million and 15,000 Bitcoin (BTC) loan on June 22. However, it was later revealed that Alameda Research, another SBF-linked firm, owed Voyager $377 million.
Bloomberg reported that SBF committed about $1 billion to save others during the crypto market crash.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
FTX US Derivatives
FTX US Derivatives is a digital currency futures and options exchange and clearinghouse regulated by the US Commodity Futures Trading Commission (CFTC).
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.
Voyager
Voyager Digital is a bankrupt cryptocurrency exchange company in the United States that was founded in 2018.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.