liquidity crunch
Former FTX CEO Sam Bankman-Fried asserts that the cryptocurrency exchange was not genuinely insolvent at the time of its bankruptcy filing. He emphasizes that the primary challenge was a liquidity crisis. Bankman-Fried’s statements suggest that the financial troubles stemmed from a lack of immediate cash flow rather than deeper insolvency issues. This perspective indicates that FTX’s operational capacity was hampered by short-term liquidity constraints. He argues that the situation could have been managed differently had there been sufficient liquidity at the time.
