Bankman-Fried Warns: Some Crypto Exchanges Already “Secretly Insolvent”
— Substantial hole, Smart vulture capitalist, Price 95 cents, Alameda — 1 min read
Nearly $2 trillion in crypto market value has evaporated since November. Two bellwether digital assets Luna, a $40 billion crypto asset associated with TerraUSD, a. $16 billion stablecoin designed to maintain parity with the U.S. dollar, have collapsed. Earlier this month bitcoin traded for below $20,000, its lowest level since December 2020. FTX founder Sam Bankman-Fried, founder of FTX and the richest person in crypto, worth some $20.5 billion, gave troubled digital currency platforms BlockFi and Voyager Digital $750 million in credit lines. There is no guarantee that Bankman. Fried will recoup his investment but says some third-tier exchanges are already insolvent and will soon fail. Source