NewsletterBreaking: Tron Founder Justin Sun Says FTX Acquisition Possible
Tron founder Justin Sun in a Bloomberg interview on Friday said his team is currently working on due diligence over the potential acquisition of FTX. The major motivation behind the move is resolving the FTX liquidity crisis and showing unity in the crypto industry.
Justin Sun and Sam Bankman-Fried (SBF) reached an agreement to first allow FTX users to withdraw Tron tokens to increase liquidity and solve the current liquidity crunch temporarily.
Justin Sun Still in Discussion With FTX CEO SBF
Tron CEO Justin Sun is still in discussion with FTX about plans, including solving the liquidity crunch and potential acquisition. However, Justin Sun said he doesn’t want to give anyone expectations as the process is still pending.
FTX investors and customers are keen to get clarity on the status of FTX after CEO SBF announced to wind down Alameda Research. FTX CEO looks to raise over $9 billion in funding from investors and rivals.
When asked about whether he’s considering debt, equity options, or a full takeover, Justin Sun said the priority is protecting the crypto industry. The crypto market cap fell over 10% in the last few days after FTX announced facing a liquidity crunch and reached out to Binance for help. However, Binance turned down the deal citing mismanagement of user funds and alleged investigations by the U.S. authorities.
Justin Sun said he may consider investing his money in the potential acquisition. However, a final decision will be made after completing full due diligence and evaluating all situations.
Regarding the funds FTX needs to recover from the liquidity crunch, he doesn’t have the exact number, but it will be billions. Justin Sun looks to rescue Tron customers first, then move to other parts.
However, he warns that the crypto market could crash if FTX files for bankruptcy, harming the trust and confidence of institutional investors.
Bahamas Securities Regulator Freezes FTX Assets
The Bahamas Securities Commission decided to freeze assets of FTX’s subsidiary FTX Digital Markets and appointed a provisional liquidator.
Tron founder Justin Sun will work with regulators on the FTX crisis. He is willing to engage regulators and understand their concerns to resolve the issues.
Read more: On-Chain Data Shows Warning Signs For Bitcoin (BTC)
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