According to the CEO of FTX, many other crypto companies are insolvent, they just don't talk about it

In a recent interview with Forbes, FTX CEO Sam Bankman-Fried, one of the richest people in the crypt world with an impressive $ 20.5 billion in assets, explained that he believes many stock exchanges are insolvent, even if they keep it a secret.

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The cryptoeconomics were hit hard by the collapse of Terra LUNA and UST last month, which probably triggered a significant domino effect, which caused a number of exposed companies to suffer significant losses.

Many problems stem from the massive leverage effect and most are attributed to creditors and debtors. More than two weeks ago, crypto-lender Celsius suspended withdrawals because it was facing significant financial difficulties.

Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, has invested $ 200 million in the LUNA token, which is now worth $ 700 and has been the victim of a major liquidation. Problems stemming from Terry, Celsius and 3AC knocked down exposure to other crypto-confirmations.

The CEO of FTX talks about other insolvent crypto companies

FTX CEO Sam Bankman-Fried talks to Forbes about this. Its FTX platform, as well as the trading company it owns, Alameda, has so far lent $ 750 million. It helped Voyager Digital cope with exposure at 3AC $ 500 million and Blockfi cryopredents to a $ 250 million loan.

Of course, there are no guarantees that the company will recoup its investment, but Bankman Fried explained:

"You know, we're willing to make a bit of a bad deal here, if that's what it takes to stabilize things and protect customers."

The CEO of FTX also stated that insolvency is avoided by several platforms:

"There are some third-level exchanges that are already secretly insolvent."

We are definitely not talking about big first-level exchanges like Coinbase, Binance or Kraken, but secondary platforms. In fact, there are hundreds of crypto exchanges in the world. Forbes lists over 600 of them in his article and they are often poorly regulated.

He also talked about Tether, a stablecoin, during the interview worth over $ 60 billion. FTX's CEO has a positive view of USDT, saying there is no reason to discredit him:

"I think the really bearish views on Tether are wrong - I don't think there is any evidence to support them."

He said in an interview that FTX is ready to deploy billions on mergers and acquisitions and is following as well over-indebted cryptocurrency miners. According to Fr.There are currently $ 4 billion in problem loans covered by crypto mining companies.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.