The chief technical officer of Tether admits there are no plans to rescue FTX
Tether has indicated it has no plans to offer a financial infusion to FTX, despite the CEO apparently reaching out to various companies for assistance.
FTX has lost at least one prospective Saviour as it struggles to plug a rumoured multibillion-dollar hole in its financial sheet.
Paolo Ardoino, the chief technical officer of stablecoin issuer Tether, said on November 10 that the business had “no intentions to invest or lend money to FTX/Alameda.”
Reuters reported on November 10 that FTX had a $9.4 billion shortage, with FTX CEO Sam Bankman-Fried reaching out to several corporations for funds to keep the exchange solvent. Ardoino’s remarks followed this revelation.
According to the story, Bankman-Fried has contacted Tether, crypto exchange OKX, and venture capital company Sequoia Capital for funding, allegedly requesting at least $1 billion from each business.
The statement of Tether’s chief technical officer is consistent with a November 9 blog post in which Tether informed the community that it had no exposure to Alameda or FTX.
It is presently unknown whether OKX or Sequoia Capital is contemplating providing help for the struggling exchange.
However, Lennix Lai, director of financial markets at OKX, earlier told Reuters on November 9 that Bankman-Fried requested up to $4 billion from the exchange to help address FTX’s liquidity concerns. However, Lai did not indicate whether OKX would aid FTX.
Meanwhile, on November 10, Sequoia wrote down its almost $214 million investments in FTX as a total loss, stating that FTX’s liquidity troubles “posed a solvency risk” but would not have a significant effect on the firm.
Kraken was also apparently contacted by FTX, according to two unidentified sources cited by Axios on November 10; however, it is unknown whether a contract was made between the two organizations.