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FTX Warns of Bankruptcy Without Rescue for $8 Billion Shortfall

  • Bankman-Fried said his firm faced up to $8 billion shortfall
  • Binance bailed on FTX takeover, citing finances and probes
Bloomberg business news
Binance Walks Away From FTX Bailout
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Sam Bankman-Fried told FTX.com investors Wednesday that without a cash injection the company would need to file for bankruptcy, according to a person with direct knowledge of the matter.

On a call before Binance pulled an about-face and bailed on its takeover offer, Bankman-Fried informed investors his crypto exchange faced a shortfall of up to $8 billion and needed $4 billion to remain solvent, the person said, asking not to be named discussing private talks. FTX is attempting to raise rescue financing in the form of debt, equity, or a combination of the two, the person said.