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Sam Bankman-Fried, CEO and Co-Founder of the leading crypto exchange platform ftxsays that he doesn’t mind being referred to as the “JP Morgan of crypto” for his role in bailing out other crypto companies.
during the recent Interview Along with Bloomberg, Bankman-Fried also talked about where his company got the money to close deals amid the crypto winter seeing bitcoin (BTC/USD) fell to a low of $17,600 in June.
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As many crypto companies were struggling in the midst of a bear market crash, FTX had the money to splash out on acquisitions and provide hedge facilities to troubled firms. Where did the exchange get the money to do these deals?
FTX Boss explained:
“So, there were a few different versions of it. And you know a piece of it was basically the FTX balance sheet — like we keep our corporate cash just in dollars. And so we’ve raised a few billion dollars over the years. And we are a profitable business.”
Even as it spent on deals, FTX was able to “partially” balance its balance sheet through earlier acquisitions. Also, some deals, such as Crypto Lender BlockFiwas controlled by FTX.US – which was also coincidentally raised $400 million from investors at the beginning of the year.
Crypto’s JP Morgan
Similar to JPMorgan, when Wall Street was in turmoil in the early 20th century, Bankman-Fried earned comparisons and was even criticized for his firm’s role in pulling out some crypto companies. of JP Morgan. He says it doesn’t bother him much.
Asked why he needed to do something, he said he felt it was “the right thing for the industry.”
He said his company had a team of people working on deals who had a “very clear mandate” – not to seek deals that would make a fortune for FTX, but which were “okay.”
He added that the team’s goal, however, was to ensure that the company’s face did not “burst”. The higher goal was to bail out rather than maximize deals. And if someone else did, FTX would have endorsed it, he said.
