FTX on brink of collapse after Binance abandons rescue
by Financial Times from Ars Technica - All content on (#65P4V)
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FTX is on the brink of collapse as chief Sam Bankman-Fried races to secure billions of dollars to salvage his empire after Binance ditched an 11th-hour rescue of one of the world's biggest crypto exchanges.
Venture capital firm Sequoia Capital said it would mark down its $214 million investment in FTX to zero after a run on the exchange in recent days blew a massive hole in its balance sheet and cast serious doubts over its survival.
In recent days, a liquidity crunch has created solvency risk for FTX," Sequoia said in a note on Wednesday to investors in its fund.