Is Justin Sun About to Bail Out FTX? TRON Boss Swoops in as SBF Faces Ruin

It comes after a brand new report has alleged that Sam Bankman-Fried moved $4 billion price of FTX funds to save lots of Alameda Analysis. 

FTX Reportedly In search of New Increase 

Issues are going from unhealthy to worse for FTX, however the troubled trade might have discovered a white knight in Justin Solar.

It’s been a disastrous week for FTX and its chief figurehead Sam Bankman-Fried after it emerged that the trade was going through a “liquidity crunch.” Binance shocked the trade when it introduced its intention to assist bail out the trade Tuesday, however the agency has since printed an announcement confirming that it’s strolling away from the deliberate deal citing due diligence checks and experiences of misappropriation of buyer funds. It’s rumored that FTX may have a gap of as much as $10 billion in its stability sheet, although the complete extent of the injury is unknown. 

Hours after Binance introduced it was stepping away, TRON founder Justin Solar surfaced on Twitter to say that he was taking a look at methods to assist FTX. Although he didn’t share the complete particulars, he wrote that he and his staff have been “placing collectively an answer collectively (sic) with #FTX to provoke a pathway ahead.” Solar stated that he was stepping in as a part of a dedication to TRON group members and to “avert additional deterioration” within the crypto trade. 

UpOnly podcast co-host and key trade figurehead Cobie tweeted a draft of a Slack message that Bankman-Fried allegedly despatched to FTX staff on Slack early Thursday, which seems to point out that the trade is in search of an extra increase. “For the subsequent week, we will likely be conducting a increase,” an excerpt from the observe reads. “Now we have had talks with Justin Solar.” Cobie claimed that he had verified the observe as real with one other supply. 

Whereas Solar is understood for his massive crypto holdings and typically controversial endeavors, his announcement will seemingly come as a shock to some given the severity of the allegations leveled towards FTX. A Thursday report from Reuters alleges that Bankman-Fried moved $4 billion price of FTX funds to save lots of Alameda Analysis after the buying and selling agency suffered losses within the wake of Three Arrows Capital’s collapse, which might place the disgraced 30-year-old government in a decent spot if confirmed. Crypto sleuths have identified that Bankman-Fried confirmed on Twitter that FTX was “rotating a number of FTX wallets” in September, which has raised suspicion that he was fraudulently shifting property over to Alameda. Bankman-Fried famously rose to prominence within the crypto area on the helm of Alameda earlier than stepping away as FTX grew, however the tight-knit relationship between the 2 entities has remained a degree of rivalry and concern within the crypto group. 

On Wednesday, it emerged that the Division of Justice and SEC have been investigating the FTX scenario, and the trade’s staff have reported that Bankman-Fried has gone silent over the previous 24 hours. It’s speculated that he might have fled the Bahamas, although these rumors are unconfirmed. 

Whereas the scenario is creating rapidly and there are nonetheless many unknowns to the continuing saga, for now there appears to be little doubt that FTX and Alameda are in deep trouble, with potential authorized ramifications to observe. Whether or not Solar can save FTX, and what that might imply for Alameda, stays to be seen. 

Moreover, in a yr that’s seen many ego-driven crypto thought leaders endure enormous falls from grace, the crypto group has overwhelmingly determined it has a brand new public enemy primary: Sam Bankman-Fried.

Disclosure: On the time of writing, the creator of this piece owned ETH and several other different crypto property.