FTX Group Seeks More Cash as Bags Spent on Acquisitions: Report

FTX and American entity FTX.US are seeking new funding after the exchanges lent millions to troubled crypto firms. According to Bloomberg, FTX and FTX.US are trying to raise $800 million in total. However, the discussions are still ongoing and subjects to change, said people close to the company.

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The move comes after FTX lent BlockFi $250 million and tried to save Voyager Digital, which eventually filed for bankruptcy. It remains unclear why the trading companies ruled by Sam Bankman-Fried are looking to boost their capital reserves as earlier he said that FTX plans to spend “billions” of dollars to acquire stakes in other companies in order to expand its product line.

Coinbase, FTX and Crypto.com to Spend Less on Marketing Due to Market Crash

In June, the FTX CEO revealed in an interview with Forbes that some cryptocurrency exchanges are “secretly insolvent.” Although the billionaire declined to name those companies, he noted there are companies that are “basically too far gone and it’s not practical to backstop them.”

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