from a bailout of FTX on Wednesday, sending cryptocurrency prices plunging as hopes for a rescue diminished.
Focus among investors is on the unknown size of customer losses and the hit to sentiment from the latest and possibly largest collapse in an industry that has turned into a minefield for investors. Justin Sun, founder of cryptocurrency network Tron, said in a tweet on Thursday "we are putting together a solution together with #FTX to initiate a pathway forward," without giving further details. Sun did not respond to a request for comment.it had been approached earlier in the week by Bankman-Fried, who described liabilities of $7 billion that needed covering fast.
Bloomberg reported that Bankman-Fried had told investors that FTX faced a shortfall of up to $8 billion and that the company would need to file for bankruptcy unless it received further funding.Investors were watching for any signs of contagion spreading beyond the crypto sector. Fadi Massih, vice president at Moody's Investors Service, said the losses have "largely remained contained within the crypto sphere.
"People's funds, including market makers', are still currently with FTX," he said. "Just when people were thinking that crypto winter might probably not last ... along comes another episode like this."