When the market crashed, a lot of crypto lending firms and DeFi platforms suffered a loss, leading to a massive bankruptcy filing in the courts. Almost every famous crypto firm went down one by one.
During this time, Bankman-Fried came forward to propose that he would acquire companies and projects that have frozen their users’ accounts due to bankruptcy cases.
Recently, in CNBC’s Squawk Box interview, Sam said that FTX has “...another ballpark billion that is completely unencumbered, certainly will get you within a factor of two of the right answer.”
FTX has been a key player in acquisitions. He shared that for some companies he only had a few days to make decisions, protect the customers, and stop the loss from spreading into the ecosystem.
FTX began with Voyager Digital and applied “a sort of two-piece line of credit” to the bailout by providing $70M just for withdrawals. It was a risk that FTX was willing to take.
Sam believes that there need to be proper regulations for the crypto ecosystem to stay long-term. FTX's reason for deploying acquisitions is to prevent the whole system from collapsing.
Currently, Sam has an ownership stake over Voyager, Robinhood, BITW, SkyBridge, Alameda Research, and FTX. He has also extended credit lines in BlockFi and Voyager.
Knowing that the money is involved, phishing attacks are most likely to increase as Meta introduces more features for blockchain and NFTs on its platforms. Therefore, strict policies are mandatory.