FTX CEO says Alameda could ‘step in’ to prevent wider crypto collapse

    21 Jun 2022

    FTX founder and CEO Sam Bankman-Fried said his Alameda Research and FTX could “step in” the situation with Celsius and Three Arrows Capital to prevent further contagion across the crypto sector. He also rejected rumors that Alameda played a part in jeopardizing the stability of Celsius.

    The downward trajectory that has greeted the crypto market since 2022 began is lasting longer than expected. And several crypto firms are on the brink of liquidation. Surprisingly, big firms like Celsius and Three Arrows Capital are amongst the firms that could potentially collapse.

    Meanwhile, Sam Bankman-Fried has suddenly claimed that Alameda Research may be ready to salvage the situation to avoid a sort of cascade effect. This is because when firms such as Celsius collapse, it’s almost certain that they will bring a host of others down with them. So, by “stepping in,” Bankman-Fried and his team hope to be able to prevent the current bear market from eating deeper into the crypto sector.

    Speaking Sunday in an interview with NPR, he explained his intentions. Bankman-Fried said this would not be the first time his company will be extending a goodwill gesture such as this.

    The billionaire CEO mentioned when FTX funded Japanese crypto exchange Liquid with about $120 million last year. In addition, he also made bold claims about how big both Alameda and FTX are as companies. And in line with that thought, he feels it is only dutiful to make a move for the general good of the entire market. And that is even if it will come at a personal price.

    “Even if we weren’t the ones who caused it or weren’t involved in it. I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive,” he said.

    On Saturday, crypto brokerage Voyager Digital announced that Alameda had agreed to give the company a 200 million USD Coin (USDC) loan and a “revolving line of credit” of 15,000 Bitcoin (BTC) worth $298.9 million at the current prices.

    Voyager Digital noted that its credit facilities offered by Alameda will each expire on December 31, 2024, and have an annual interest rate of 5% payable on maturity. The firm stated it will only use the credit lines “if needed to safeguard customer assets” amid severe market volatility.

    Image Source: https://cryptofrontline.com/ftx-exchange-founder-sam-bankman-fried-joins-robinhood-investors/

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