Sam Bankman-Fried has reportedly asked investors for $8 billion in emergency funding to cover a shortfall caused by the flood of withdrawal requests to his crypto exchange in recent days.
The CEO reportedly made the request to investors in a Nov. 9 call where he discussed ways to help solve FTX's financial problems, the Wall Street Journal (WSJ) reported.
According to the source, Bankman-Fried wants to raise $3 billion to $4 billion in equity, and the exchange could raise additional debt to make up the difference.
The WSJ source claims that Bankman-Fried has additionally declared his intention to "make customers and investors whole" by using his personal wealth.
It is also believed that the FTX CEO blamed some of the company's problems on what he called a campaign against the exchange, which led to a surge in investors looking to cash out out of fear of losing their investment, during the call.
According to a Nov. 8 report from Reuters, FTX experienced withdrawals of about $6 billion in the 72 hours prior to Nov. 8.
Additionally, according to reports, he said in the call that FTX wouldn't be able to "settle withdrawals" because its collateral was losing value and couldn't be liquidated.
Learn more about FTX this week with our news series: https://gamefi.org/insight/updating-binance-ftx-exchange-what-happened-these-days