FTX will not be getting saved from Tether, which admitted that it has no plans to offer a cash injection despite the CEO reportedly asking and seeking diverse companies for assistance. FTX, a cryptocurrency exchange, has lost at least one prospect who could have been a rescuer as it struggles to fill a reported multi-billion dollar crevice in its balance sheet.
Paolo Ardoino, the chief technology officer of stablecoin issuer Tether, announced and confirmed on the 10th of November that the company has no intention to give out, invest in, or lend money to FTX or Almanda.
Read:FTX's Regional Crypto Exchanges Slowly Reopen Withdrawals
Tether CTO confirms no plans to rescue FTX
Ardoino's comments dropped immediately after a Nov. 10 report released by Reuters hinted that FTX has fallen short of some investment and is now at $9.4 billion, with FTX CEO Sam Bankman-Fried contacting multiple companies and asking for cash to sustain and keep the exchange in operation.
In the report posted by Tether, crypto exchange OKX and venture capital firm Sequoia Capital are some of the firms that Bankman-Fried has contacted for cash help, reportedly seeking $1 billion or more from each of these companies. Tether's Chief Technology Officer's reaction appears to be consistent with the perception from Tether's November 9th blog post, which confirmed to the community that it has disclosed to Alemeda or FTX.
There is a report that the stablecoin issuer has seized 46,360,701 Tether (USDT) possessed by FTX in its Tron blockchain wallet in a bid to act according to the enactment of the law on the 10th of November. It is currently unknown whether Sequoia Capital or OKX are considering financial support for the beleaguered exchange.
Nonetheless, on the 9th of November, Lennix Lai, director of financial markets at OKX, initially informed Reuters that Bankman Fried sought close to $4 billion from the exchange to solve FTX liquidity issues. Interestingly, he never confirmed or revealed if the firm is looking into helping FTX.
FTX is stranded, and with further confirmation from Tether's CTO not to help, FTX seems doomed. Let us know what you think about this in the comment section below.
