FTX in talks to raise funds amid spending spree to prevent contagion
Image by CryptoSlate

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.

Oluwapelumi Adejumo
By Oluwapelumi Adejumo
Senior Reporter CryptoSlate
1 min read
Make preferred on Google logo

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.

Article context

Mentioned in this article

Related Asset Bitcoin #1 BTC $80,628.63 24-hour change: up 4.31% Loading price history… 24H Up 4.31% 7D Up 25.35% 30D Up 25.43% Related Company FTX Cryptocurrency Derivatives Exchange Related Company Celsius Network Earn, borrow & pay on the blockchain Related Company Alameda Research Failed crypto quantitative trading firm Related Company Voyager Making crypto for all simple and rewarding. Related Person Sam Bankman-Fried Former CEO & Founder · FTX
Posted in
Exchanges Investments FTX logo FTX

Editorial credits

Oluwapelumi Adejumo
Oluwapelumi Adejumo
Senior Reporter CryptoSlate

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

More from Oluwapelumi
Context

Related coverage

More coverage

Saylor sat out Bitcoin’s 20% rally while Tom Lee bought Ethereum after a 30% surge

Judge lets FTX recovery trust chase Binance for $1.76 billion over a 2021 share buyback

Bearish

FTX’s $900M payout drops Friday, triggering 6-month countdown for creditors to onboard or forfeit funds entirely

AI Usage Disclaimer

CryptoSlate may use AI tools to support research, editing, and production workflows. Our journalism remains human-led, with our editorial team responsible for every published article. Read our full AI usage disclaimer.

Commitment to Transparency

The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Editorial & Financial Disclaimer

Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article.

Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies. For more information, see our company disclaimers.