FTX CEO: Firms have a “responsibility to step in” to prevent market collapse

Sam Bankman-Fried addressed the need for crypto firms to take action to help contain losses

Crypto trading platform FTX                                 
FTX CEO Sam Bankman-Fried says firms have a “responsibility to consider stepping in, even if it is at a loss” – Photo: Shutterstock
                                

The CEO of one of the largest crypto exchanges has addressed the need for crypto firms to step in and prevent further contagion of the current crypto market.

In a recent interview with NPR, Sam Bankman-Fried, CEO of FTX, said that through his firm Alameda Research and crypto exchange FTX, he has a “responsibility to seriously consider stepping in” to prevent a greater market-wide fallout and help contain losses.

“I do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion,” said Bankman-Fried. “Even if we weren’t the ones who caused it, or weren’t involved in it. I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive.”

He also pointed out that firms have done this numerous times “in the past”, citing an example from last year when FTX provided Japanese crypto exchange Liquid with $120m in financing to help the firm fight off hackers that almost got away with $100m worth of cryptocurrencies.

Wider market turmoil

With the market continuing to face a negative downward trend, major crypto firms such as Celsius Network, a crypto lending company, and Three Arrows Capital, a Dubai-based crypto hedge fund, are reportedly re-evaluating their assets, which could potentially bring other firms down if they were to collapse.

Cryptocurrency hedge fund Three Arrows Capital (3AC), which was founded by Su Zhu and Kyle Davies, announced last week that it was committed to “working things out”. 

“We are in the process of communicating with relevant parties and fully committed to working this out,” said 3AC co-founder Su Zhu in a tweet.

According to the Wall Street Journal, 3AC’s founders say they still believe in the future of cryptocurrencies, and have hired legal and financial advisers to help work out a solution for investors and lenders.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image