Billionaire Sam Bankman-Fried’s FTX is seeking fresh funds, Bloomberg has reported.
That goal is also being pursued by FTX US, a subsidiary of the Bankman-Fried led crypto exchange, according to sources close to the developments.
For FTX and FTX US, the need for fresh fundraising comes on the back of a major acquisition spree and multi-million dollar credit lines to embattled crypto firms. Some of these firms include BlockFi and Voyager Digital that secured credit lines from Bankman-Fried and Alameda Research.
In a comment on the need to help some of the struggling crypto companies, the FTX CEO said in an interview:
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,” he said. “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.”
Estimates put the total splash on acquisitions and rescue credit lines to around $1 billion.
Per the report, both firms are seeking funding to match what they raised earlier in the year. This refers to FTX’s $400 million funding at a $32 billion valuation and FTX US’ similar funding round at an $8 billion valuation.
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