Cryptocurrency’s second-richest billionaire drawback, says extra digital asset firms will collapse: Report

The second-richest crypto billionaire is warning that some digital asset companies are struggling financially as the market downturn continues.

Forbes report that FTX co-founder and CEO Sam Bankman-Fried believes that some of the lesser-known crypto exchanges have gone bankrupt.

“There are a number of third-tier exchanges that have secretly defaulted.”

According to the report, Bankman-Fried believes that some digital asset companies’ difficulties are insurmountable.

“There are companies that have basically gone too far and are impractical to support them for reasons such as significant gaps in their balance sheets, regulatory issues or not having much business left to do. salvage.”

The report states that the FTX CEO’s goal in providing financial support to struggling crypto companies is to stabilize affected businesses and protect users.

“You know, we’re willing to do a somewhat bad deal here, if that’s what’s needed to stabilize things and protect customers.”

FTX last week injection around $250 million into crypto lender BlockFi to bolster its balance sheet after a sharp drop in digital asset prices.

Earlier this month, cryptocurrency platform Voyager Digital take The revolving line of credit includes $200 million in cash and 15,000 Bitcoins from Alameda Research, a quantum trading firm founded by Bankman-Fried. This amount will be used to protect clients’ assets in the context of market volatility.

Bankman-Fried Ranked Monday on Forbes’ 2022 list of the world’s richest crypto billionaires, with a net worth of $24 billion. The world’s richest crypto billionaire is Binance co-founder and CEO Changpeng Zhao, who has a net worth of $65 billion.

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