Sam Bankman-Fried Told OKX FTX $7 Billion Liability

(This November 9 story has been reclassified to correct the hyphenation in the title)

HONG KONG (Reuters) – FTX CEO Sam Bankman-Fried appealed for a $2 billion to $4 billion cash injection from OKX on Monday morning just before news of the now-collapsed acquisition proposed by archrival Binance, a senior OKX executive said. .

The struggling exchange’s CEO had shown “a great deal of urgency” in seeking this amount of cash injection during a call on November 8, as it would have helped FTX survive a short-term liquidity crunch. , said Lennix Lai, director of financial markets. at OKX.

The call for the cash injection came as FTX faced a total liability of $7 billion, Lai said, citing Bankman-Fried’s comment made on the call.

FTX approached OKX for a deal as it needed to survive a slew of withdrawal requests, Lai said, citing multiple calls he had with Bankman-Fried on Nov. 8.

“If FTX doesn’t get an immediate cash injection, they would go bankrupt,” Lai said, he recalled their conversation during a later call at 7 a.m. HK time.

“Sam said he was talking with a few other potential investors, so he needed an urgent decision from us,” he said.

(Reporting by Georgina Lee; Editing by Jacqueline Wong)