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FTX Seeks Urgent $2 Billion to $4 Billion Cash Injection from OKX Amid Liquidity Crisis

FTX CEO Sam Bankman-Fried urgently requested a $2 billion to $4 billion cash injection from OKX to address a short-term liquidity crisis, as the exchange faced $7 billion in liabilities.
Published on 2022-11-10

Urgent Request for Cash Injection

FTX CEO Sam Bankman-Fried sought a $2 billion to $4 billion cash injection from OKX, according to a senior executive at the cryptocurrency exchange. This urgent request was made on November 8, just before rival Binance announced its now-collapsed acquisition plans.

FTX's Financial Struggles

Lennix Lai, director of financial markets at OKX, revealed that FTX was facing a $7 billion total liability. Bankman-Fried emphasized the urgency of securing funds to navigate a short-term liquidity crisis and survive a surge in withdrawal requests.

Bankruptcy Warning

Lai recalled a conversation where Bankman-Fried warned that without immediate cash, FTX would go bankrupt. The FTX CEO also mentioned discussions with other potential investors, pressing OKX for a swift decision to address the crisis.

This situation highlights the intense financial pressures FTX faced amid a critical period for the cryptocurrency industry.

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