The FTX CEO admitted that the bailouts issued to some cryptocurrency companies were sudden judgments and the results so far have been mixed.
Sam Bankman-Fried, CEO of FTX, admitted that some of the bailouts issued to cryptocurrency companies were sudden judgments. He made it known during a recent interview with Bloomberg.
Bankman-Fried admitted that FTX spent nearly $ 1 billion helping cryptocurrency companies in trouble during this ongoing Crypto Winter. However, not all bailouts have produced positive results. He said;
“I think some would have been profitable, others not. We had to make timely judgments. “
Bankman-Fried admitted that the deal reached in June with cryptocurrency lender Voyager Digital went badly. FTX’s sister company Alameda Research granted a $ 485 million loan to Voyager earlier this year, but the funds weren’t enough to stop the company from filing for bankruptcy a month later.
The FTX CEO added that he has higher hopes for other deals he has orchestrated, including one with BlockFi. FTX.US agreed earlier this year to issue a $ 400 million line of credit to the cryptocurrency firm in exchange for an option to outright purchase the lending platform. He said;
“BockFi had just burned down their catwalk, had a functional business with a strong team and just needed more money to be able to operate effectively in the future.”
Bankman-Fried said its support for troubled companies is fueled by FTX’s profitability and fundraising. She added that the ultimate goal of the bailouts was to support struggling companies instead of maximizing deals.
Speaking of the broader cryptocurrency market, Bankman-Fried said he often goes to Washington to lobby Congress on behalf of the cryptocurrency industry.
He said he’s fine with any of the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFT) that is in charge of regulating the crypto space. FTX chief added it;
“So, eventually, both of them will become regulators. And, you know, the CFTC will settle commodity futures, so it will most likely settle token futures that are not stocks. It is very likely that the SEC will end up regulating the spot security token markets. In principle, I’m fine with both regulators or any combination of them. I think the non-security token aspect fits the CFTC regime. “
FTX is one of the leading cryptocurrency exchanges in the world and has experienced massive growth over the past couple of years.