The cryptocurrency executive Sam Bankman-Fried said he would try to raise funds over the next week to prop up his crypto exchange FTX, which collapsed after a bank run that sent the crypto markets into meltdown this week.
Mr. Bankman-Fried shared details of the plans in a memo to FTX employees early on Thursday morning. “The goal of the raise will be first to do right by customers; second by current and possible new investors,” he wrote. “Third all of you guys.”
He said that FTX has “a lot theoretically in and/or potentially for the raise,” but acknowledged those deals may not ultimately come together. He also said that FTX has held talks with the crypto entrepreneur Justin Sun, who tweeted on Wednesday that he was working on “putting together a solution” with FTX.
The size of the hole in FTX’s balance sheet remains unclear, but it could be as large as $8 billion, according to a person familiar with the figures, who was not authorized to discuss them.
The company collapsed this week after a bank run set off by FTX’s top rival, Changpeng Zhao, the chief executive of the giant exchange Binance. On Tuesday, Binance announced that it had tentatively agreed to buy FTX, only to pull out of the deal a day later after conducting a due-diligence process.
An FTX spokesman declined to comment. The memo was earlier reported by Reuters.
This is a developing story. Check back for updates.