SBF hopes for a Hail Mary and is trying to collect donations

SBF hopes for a Hail Mary and is trying to collect donations

FTX's fallen leader Sam Bankman-Fried appears to still be looking for alternative sources of funding, according to to the Wall Street Journal.

While the exchange and its 134 subsidiaries filed for Chapter 11 bankruptcy protection last week, leaving most employees jobless, some loyal soldiers may still be trying to salvage the wreckage.

Bankman-Fried, who is believed to still be in the Bahamas, reportedly spent the past weekend in talks with investors considering funding the $8 billion the company owes to its traders and institutional customers - but so far without success.

FTX's bankruptcy case currently involves more than 100,000 creditors - with the majority being trading customers whose funds are now in limbo.

Most customers' funds were frozen on November 8th with no possibility of withdrawal. To make matters worse, on November 12th, up to $477 million worth of crypto that remained on the exchange was stolen.

It is unusual for a company that has just filed for bankruptcy to seek new lines of equity. However, FTX could receive a loan that could be used to maintain its operations, known as Debtor in possession financing which requires court approval.

The Bahamas Securities Commission specified on Monday that the Supreme Court had appointed two interim insolvency administrators from PwC in the case.

“Given the scale, urgency and international impact of the unfolding events,” the commission said, its priority is to “continue to protect the interests of customers, creditors and other stakeholders of FTX Digital Markets Ltd. (FDM) worldwide.” FTX Digital Markets is the local Bahamian entity of the exchange.

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The post SBF Hopes for a Hail Mary, Attempts To Raise Funds is not financial advice.