FTX CEO Makes A Deal with Tron’s Justin Sun
- There was still an $8 billion hole on FTX balance sheet that the exchange had to fill and as per leaked chats, Sam Bankman-Fried, the founder and CEO of the Bahamas-based exchange, reached out to the founder of Tron (TRX) blockchain, Justin Sun.
- Sun announced via his official Twitter account that he stands behind all Tron token (TRX, BTT, JST, SUN, HT) holders on the Bankman-Fried crypto exchange.
- The Slack messages leaked by crypto personality Cobie confirm that the priority will be to “do right by customers,” then investors, and then the employees of the company.
Binance, the world’s biggest crypto exchange, backed out of its deal with its rival exchange FTX and refused to acquire the firm after going through its balance sheet. The exchange’s CEO, Changpeng Zhao, stated that as a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, they are not going through with the purchase.
However, there was still an $8 billion hole on its balance sheet that FTX had to fill and as per leaked chats, Sam Bankman-Fried, the founder and CEO of the Bahamas-based exchange, reached out to the founder of Tron (TRX) blockchain, Justin Sun. Meanwhile, Sun announced via his official Twitter account that he stands behind all Tron token (TRX, BTT, JST, SUN, HT) holders on FTX, and added that his team is “putting together a solution together with FTX to initiate a pathway forward.”
Sun added that “the ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike.” He confirmed that his team has been “working around the clock to avert further deterioration” and said that he has “faith that the situation is manageable following the wholistic approach together with our partners.”
Interestingly, the Tron founder did not reveal the exact involvement that he had with FTX but confirmed that he will clear the air soon. However, leaked message on FTX Slack that was received and verified by prominent crypto personality on Twitter, Cobie, confirmed that Bankman-Fried, also known as SBF in the crypto space, was in talks with Sun to raised funds and that it is stated for next week.
Additionally, the Slack messages read that the priority will be to “do right by customers,” then investors, and then the employees of the company.
Furthermore, the leaked chat reveals:
“I don’t want to give any sense of confidence in what will happen, and don’t want to imply anything about the odds of success here. But, for the next week, this will be my top priority.”
Interestingly, the Twitter post from Justin Sun caused Tron tokens such as – TRX, BTT, SUN, and JST – to briefly rocketed 4,000%, from 6 cents to $2.5, on SBF’s platform.
Additionally, it is also crucial to note that in July this year, Sun stated that he has up to $5 billion to aid ailing crypto companies. Ironically, this trend was started by SBF himself and it seems that he took things too far and now, the once 2nd ranked exchange in the crypto space is ranked at 69th position in the space.
Update
FTX confirmed the deal with Justin Sun according to which a special facility will be established to allow holders of TRX, BTT, JST, SUN, and HT to swap assets from FTX 1:1 to external wallets.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
