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