FTX US general counsel Ryne Miller said in an internal memo he’s working with advisers to preserve “whatever is preservable” of the crypto exchange.
(Bloomberg) — FTX US general counsel Ryne Miller said in an internal memo he’s working with advisers to preserve “whatever is preservable” of the crypto exchange.
“We should not be optimistic for an outcome that is positive,” Miller wrote.
“I’m working with outside advisers to be best prepared to navigate FTX entities to next steps.”
Miller’s message was sent to staff on a Slack channel Wednesday night and later deleted by a member of the founding team, according to a person familiar with the matter.
The general counsel said he hasn’t received much clear information from the founders, and has advised US regulators of his instruction to founders to turn off functionality of both the US and global platforms.
“Folks should prepare to make their own choices as appropriate for their personal situation on next steps,” he wrote.
“FTX US looks prepared to make payroll at least in the next cycle.”
FTX founder Sam Bankman-Fried said in a tweet Thursday that the firm is “100% liquid” and “not financially impacted” by FTX International’s problems.
FTX US’s trading may be halted in a few days and users should close down any positions, according to a notice from the website. Withdrawals will remain open, it said.
The crisis engulfing FTX snowballed this week, after revelations that FTX.com can’t cover all customer funds due to a shortfall of as much as $8 billion.
The Bahamas Securities Commission has frozen the assets of FTX Digital Markets “and related parties” as the crypto platform company teeters closer to collapse.
FTX US, which shares similar owners and investors with FTX’s global exchange, was valued at $8 billion in a January round.
In recent days, the Securities and Exchange Commission and the Commodity Futures Trading Commission have asked for details about the ownership structure of FTX US and FTX.com, and whether customer accounts were properly segregated, Bloomberg News has reported.
An FTX US representative didn’t immediately return a request for comment.
Sequoia Capital has written down the full value of its $214 million investment in FTX, including holdings of FTX US, a spokeswoman for the firm said.
For crypto market prices: CRYP; for top crypto news: TOP CRYPTO.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
