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SBF Wants To Raise Liquidity and Restart Bankrupt FTX

Cointime Official

Former FTX’s founder, Sam Bankman-Fried, is attempting to raise liquidity to restart FTX, which has already begun bankruptcy proceedings.

Sam Bankman-Fried (SBF) has again updated his days-long mysterious tweets, which have since puzzled and irritated the cryptocurrency community. In the update on Wednesday, the former CEO of FTX mentioned plans to restart the embattled cryptocurrency exchange, after making customers whole.

Can FTX be Restored?

Bankman-Fried tweeted that he has been cooperating with the FTX team and also meeting with regulators in-person to do right by customers. Among SBF’s top goals is cleaning up and focusing on transparency and thereafter making customers whole before investors of the beleaguered crypto exchange.

While explaining the reasons for the FTX liquidity crunch, Bankman-Fried said, “there was too much leverage — more than I realised.” As a result, the exchange succumbed to the liquidity shortfall amid “a run on the bank and market crash.”

Behind the liquidity raise, Bank-man Fried plans to restart the cryptocurrency exchange after reimbursing all affected customers. “Part of me thinks I might get somewhere,” SBF tweeted on Wednesday.

Crypto Community Reacts to SBF’s Plan

Many people jeered at Bankman-Fried’s tweets and plan to restart the cryptocurrency exchange. Some even doubted how possible it could be, given FTX has already commenced bankruptcy proceedings last week. Moreso, SBF has already resigned as chief executive officer of the exchange.

An hour after SBF’s tweets, Binance CEO Changpeng Zhao wrote on Twitter that “there are honest mistakes you can recover from. But once your credibility is gone, you are done.”

Meanwhile, this is not the first time Bankman-Fried has mulled over restoring the beleaguered crypto exchange. Prior to filing for bankruptcy protection, he discussed with FTX’s employees a potential recovery roadmap for FTX. However, the initial plan did not hold, as many assume the exchange failed to secure funding.

However, some sources familiar with the matter told Wall Street Journal that Bankman-Fried is still trying to raise capital, despite the bankruptcy proceedings in process.

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