There have been new developments regarding the FTX crisis. It is known that FTX is seeking funds to recover the status of the exchange. Tether, behind the USDT stablecoin, announced that it will not fund FTX in its statements on this subject. On the other hand, it turned out that the White House was following the FTX collapse. Here are the details…
Tether (USDT) not trying to recover FTX
Cryptocurrency exchange FTX is trying to fill a reported multi-billion dollar gap in its balance sheet. In the meantime, he lost at least one potential savior. Paolo Ardoino, chief technology officer of stablecoin issuer Tether, confirmed on November 10 that the company “has no plans to invest or lend money to FTX/Alameda.” Ardoino used the following statements:
Tether has no plans to invest or lend to FTX/Alameda. Dot.
Ardoino’s comments came as a Nov. 10 report from Reuters reached out to multiple companies seeking cash to keep the stock market afloat, FTX CEO Sam Bankman-Fried, for which FTX currently has a $9.4 billion deficit. According to the report, Tether, crypto exchange OKX, and venture capital firm Sequoia Capital are some of the companies that Bankman-Fried has reportedly applied for funding, claiming $1 billion or more from each firm.
Tether’s chief technology officer response appears to be in line with sentiment from Tether’s Nov. Meanwhile, Tether froze FTX’s $46.3 million USDT. As it is known, this happened at the request of the authorities in the USA.
FTX is on the agenda at the White House
On the other hand, the White House reported that the Biden administration followed the FTX collapse. White House Press Secretary Karine Jean-Pierre said at a White House briefing that “the administration has consistently argued that without oversight, cryptocurrencies risk harming citizens.” She also stated that the White House is working to contain the situation. He pointed out that the Biden administration is aware of the latest developments regarding FTX.
He stated that they monitor the risks of cryptocurrencies and consider them important. Stating that the latest news has underlined the concerns about the crypto space, the Secretary argues that this indicates the prudent regulation of cryptocurrencies.
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