In an emergency funding request, SBF tells investors that FTX needs $8B: Wall Street Journal

Key points: 

• Sam Bankman-Fried asked investors for $8 billion in emergency funding to cover a funding gap.
• He also pledged he would use his personal wealth to "perfect clients and investors".
• On Nov. 8 Reuters report showed that FTX withdrawals were around $6 billion in the 72 hours to Nov. 8.
• Meanwhile, a Nov. 9 Bloomberg report said Bankman-Fried told investors the company would file for bankruptcy without a cash injection,
• Bloomberg’s sources also appear to corroborate claims that FTX is trying to raise bailout funds through a combination of debt and equity to keep it out of liquidation.

Sam Bankman-Fried has reportedly asked investors for $8 billion in emergency funding to cover a funding gap caused by a flood of withdrawal requests on his cryptocurrency exchange in recent days.

According to The Wall Street Journal (WSJ), citing "people familiar with the matter," the CEO made the request during a Nov. 9 call to investors in which he outlined a solution method to FTX's financial woes.

Bankman-Fried is trying to raise between $3 billion and $4 billion in equity, and the exchange may take on some debt to make up the shortfall, the sources said.

Bankman-Fried also said he would use his personal wealth to "perfect clients and investors" according to a Wall Street Journal source.

It is also understood that during the conference call, the FTX CEO blamed a campaign against the exchange in part for FTX’s troubles, which led to a large number of investors pulling out for fear of losing the investments they wanted.

At Nov. 8 Reuters report showed that FTX withdrawals were around $6 billion in the 72 hours to Nov. 8.

He also reportedly said on the conference call that FTX was unable to "fix withdrawals because its collateral has devalued and may not be liquidated."

On November 9, the FTX website posted a new banner stating that it is "currently unable to process withdrawals. We strongly advise against deposits."

Meanwhile, a Nov. 9 Bloomberg report said Bankman-Fried told investors the company would file for bankruptcy without a cash injection, citing "people with direct knowledge of the matter."

Bloomberg’s sources also appear to corroborate claims that FTX is trying to raise bailout funds through a combination of debt and equity to keep it out of liquidation.

Binance signed a non-binding letter of intent to buy FTX on Nov. 8, but withdrew from the transaction less than 48 hours later, citing issues “beyond our control or ability to help.”

As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.

Binance, November 9.