Sam Bankmann (SBF) proposes a solution to repay FTX investors and users by forming a new company.
Former CEO of FTX, Sam Bankmann (SBF), hints at the possibility of starting a new company. Following the collapse of FTX, Bankmann hints at securing money to repay the lost funds of FTX customers.
The CEO stepped down after FTX collapsed due to financial related problems. The firm later declared bankruptcy and many investors lost their funds.
SBF to rescue investors
Appearing in a BBC interview, Bankmann hinted to viewers about the potential to start a new company. The former CEO believes that he owes the FTX users a huge ordeal after the collapse of FTX.
He promised to put all his effort into salvaging the situation within his capacity. Surprisingly, some experts are of the contrary opinion concerning Bankmann’s solution.
Some experts warn that Bankmann will fail to secure the support of investors. The experts attribute this to his recent incident with the collapsed crypto exchange.
After facing liquidity problems and Binance withdrawing its support, Bankmann filed for bankruptcy. Documents from the bankruptcy filing reflect a lot. The filing shows that the potential loss of FTX creditors’ funds ranges between $10 to $50 billion.
Sam Bankmann still faces legal challenges over the collapse of the exchange. He seems not to be in the clear anytime soon. Some believe that his endeavor to start a new company remains farfetched.
Related; G20 Leaders Propose More Stringent Global Crypto Regulations as FTX Bankruptcy Unfolds
The FTX Collapse
More than one million FTX users remain locked out of their crypto wallets. The users are unable to access their funds.
Bankruptcy lawyers described the FTX collapse as one of the most abrupt and difficult collapses in the history of corporate America. More is yet to be unpacked on SBF’s refund solution.
