TRON DAO founder, Justin Sun, has said he is “putting together a solution with FTX to initiate a pathway forward” after leading cryptocurrency exchange Binance announced it decided to “not pursue the potential acquisition” of FTX.
Binance dropped out of the FTX deal, citing concerns surrounding the exchange’s business practices and investigations by US financial regulators. FTX’s CEO, Sam Bankman-Fried, told investors on Wednesday that the firm needed up to $8 billion after a bank run saw it halt withdrawals.
In a statement, Justin Sun said that he would “stand behind all Tron token holders on FTX,” and that he was working with FTX to “initiate a pathway forward.” Sun added:
“The ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike.”
Sun is the founder of TRON DAO and has invested in a number of blockchain projects, including Steem and BitTorrent.
Venture Capital firm Sequoia Capital, which invested $150 million in both FTX and FTX.US, has marked the value of its investment down to zero. The VC firm defended it conducted adequate due diligence at the time of investment, saying then FTX was a profitable company that had around $1 billion of revenue and $270 million of operating income.
Reuters has reported that Sam Bankman-Fried’s trading firm, Alameda Research, suffered a series of losses from deals, and that Bankman-Fried transferred at least $4 billion in FTX funds secured by assets including FTT and sharein trading platform Robinhood Markets to support it.
A portion of these assets were customers’ deposits. A reportedly leaked Slack message from Bankman-Fried has revealed he plans to “do right by customers.”