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FTX Hurtles Toward Bankruptcy With $8 Billion Hole, US Probe

  • Bankman-Fried said his firm faced up to $8 billion shortfall
  • Binance bailed on FTX takeover, citing finances and probes
Bloomberg business news
WATCH: Sam Bankman-Fried warns of bankruptcy. Sonali Basak reports.Source: Bloomberg

The crisis engulfing Sam Bankman-Fried’s FTX.com is rapidly worsening, with the onetime crypto wunderkind warning of bankruptcy if his firm can’t secure funds to cover a shortfall of as much as $8 billion.

Bankman-Fried informed investors of the gap on Wednesday, shortly before rival exchange Binance abruptly scrapped a takeover offer. He said FTX.com needed $4 billion to remain solvent and is attempting to raise rescue financing in the form of debt, equity, or a combination of the two, according to a person with direct knowledge of the matter.