Thu, June 13

Tether’s CTO Paolo Ardoino Has No Plans Pulling Up Falling FTX

Tether Exchange News
  • FTX is currently at a $9.4 billion deficit and is facing liquidity crunch.
  • Tether informed the community that it has no exposure to Alameda or FTX.

More than one possible savior has backed out as the cryptocurrency exchange FTX struggles to plug a multi-billion dollar hole in its financial sheet. After Binance, Tether’s CTO Paolo Ardoino said on November 10 that the business has “any plans to invest or lend money to FTX/Alameda.”

FTX CEO Sam Bankman-Fried (SBF) has reportedly reached out to numerous corporations for funds to keep the exchange solvent, and a report from Reuters on November 10 stated that FTX is currently at a $9.4 billion deficit, prompting Ardoino’s statements.

Struggle Continues For FTX

According to the report, Bankman-Fried has contacted several organizations for funding, including Tether, the cryptocurrency exchange OKX, and the venture capital company Sequoia Capital, asking for at least $1 billion from each.

This comment from Tether’s CTO seems to echo the mood of a blog post published by Tether on November 9 in which the company informed the community that it has no exposure to Alameda or FTX.

To further cooperate with law authorities, on November 10 the stablecoin issuer reportedly froze 46,360,701 Tether USDT owned by FTX in its Tron blockchain wallet. It is unclear at this time whether OKX or Sequoia Capital is contemplating providing funding to the struggling exchange.

On November 9, OKX’s director of financial markets, Lennix Lai, told Reuters that Bankman-Fried had requested up to $4 billion from the exchange to help address FTX’s liquidity concerns, however, did not clarify whether or not OKX would provide assistance to FTX.

As for Sequoia, they wrote off all of their $214 million stake in FTX on November 10th, citing the company’s liquidity problems as having “created a solvency risk,” but they reassured investors that this wouldn’t have much of an effect on the firm.

Recommended For You:

Japanese Regulator Orders FTX Japan To Cease Operations

A trader himself, Rossi has 7 years of experience trading in the forex market and the passion for writing has brought him to Newscrypto. He is the perfect combination of market knowledge and writing skills, making him one of the most sought-after writers on cryptocurrency.