FTX founder and CEO Sam Bankman-Fried (popularly called SBF in the world of crypto) gave an insight into the current situation of the crypto market and also came out in support of Tether, the issuer of the biggest stablecoin in the crypto market, USDC, in an interview with Forbes. 

FTX boss’ generous streak

FTX had recently bailed off BlockFi, another crypto exchange from its liquidity crunch, and helped the firm bolster its balance sheet and regain its strength with a $250 million credit line. On the other hand, the exchange had also helped Voyager Digital, a crypto exchange, by providing a $500 million in financing to the firm last week via the founder’s quantitative trading firm Almeda.

While it is not sure that FTX will be able to recoup the investments and if helping the firm will pay off in the long term, SBF commented that his firm is “willing to do a bit of a bad deal here if it takes that to somehow stabilize things.”

“Secretly insolvent?”

However, he hinted that many exchanges wouldn’t make it out of the current bearish situation, adding that apart from the major ones, there are plenty of exchanges that operate outside regulations and do not comply with KYC rules. The founder of FTX added that many of the firms providing services related to crypto are “secretly insolvent.”

“There are companies that are fundamentally too far gone and it’s not practical to bail them out for reasons like a significant hole in the balance sheet, regulatory issues, or because there’s not much of a business left to salvage,” said the FTX CEO.

Backing Tether

SBF also backed Tether stating that the firm can be trusted. In the light of many stablecoin issuers receiving heat from the crypto community, Tether’s lack of transparency has invited criticism. 

“I think the truly bearish views on Tether are wrong… I don’t think there’s any evidence to support them,” Bankman-Fried added.