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
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.
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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.
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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.
