According to the CEO of FTX cryptocurrency exchange, his company’s bailout efforts within the industry have yielded mediocre results thus far.
In an interview with Bloomberg, FTX CEO Sam Bankman-Fried tells host David Rubenstein that his firm’s efforts to shore up ailing crypto companies, including money spent on embattled crypto broker Voyager Digital, have not all been profitable.
“Mixed, is basically the answer. I think some are going to turn out to be profitable, some won’t be. With Voyager, there’s $70 million that we put in and I’m not sure we’re ever seeing it again.
We had to make snap judgment calls and we made them such that if things turned out well, they’d be good investments. If they turned out badly, they’d be bad investments, but we sort of limited the amount we could lose from it.”
When asked how FTX came up with the funds to provide the loans, the billionaire says that the company keeps its corporate cash in dollars and has raised several billion dollars throughout the last couple of years.
FTX is a profitable business. The exchange also made some acquisitions, which partially balances that out, but we had some cash left. And with the BlockFi deal, for instance, Sam Bankman-Fried thinks that was on FTX.US’s balance sheet.
In early summer, the BlockFi lending platform agreed to a $400 million revolving credit facility with FTX.US and an option for FTX to acquire BlockFi for a variable price of up to $240 million.
The CEO explained what motivates FTX to help crypto companies in need, which he thinks is right for the industry. But depending on that doing as much as possible to save the industry. The higher goal is to try to support positions rather than maximize these trades, according to Sam:
“Your goal on this is not to make a fortune. Your goal is to do okay deals and for us not to get our faces ripped off.”
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