The fall of the FTX empire has sent the crypto market into yet another deadly spiral. With Binance pulling out of the deal, Tron’s Justin Sun has joined the rescue race. In the latest update, the exec said he and his team were “putting together a solution” along with the troubled cryptocurrency exchange “to initiate a pathway forward.”
The exec has not detailed anything about his involvement except that his team “has been working around the clock to avoid further deterioration.” A classic-Justin Sun move, never one to miss out on a chance for press.
Further to my announcement to stand behind all Tron token (#TRX, #BTT, #JST, #SUN, #HT) holders on #FTX, we are putting together a solution together with #FTX to initiate a pathway forward. @FTX_Official
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 10, 2022
Sun’s tweet did not immediately provide clarity on whether this solution would rescue the beleaguered as an entity or that he intends only to backstop the Tron-related tokens held on it. But leaked messages shed more light on what’s coming next.
Justin Sun to Be FTX Savior?
According to a leaked message from Sam Bankman-Fried on FTX slack that was received and verified by prominent crypto personality Cobie, the CEO admitted being in talks with Sun for a potential raise that is slated for next week. The priority will be to “do right by customers,” then investors, and then the employees of the company.
The supposedly leaked chat by SBF reads,
“I don’t want to give any sense of confidence in what will happen, and don’t want to imply anything about the odds of success here. But, for the next week, this will be my top priority.”
His tweet caused Tron’s native token – TRX – to briefly rocketed 4,000%, from 6 cents to $2.5, on FTX. Several other Tron-based assets, such as – BTT, SUN, and JST, surged as well.
During the bailout season in July this year, Sun said he’s willing to spend $5 billion to help ailing crypto companies, a trend that was started by SBF himself. Only time will tell if the deal actually goes through or if Sun’s tweet is yet another one of his marketing gimmicks.
FTX Regulatory Probe
State and federal regulators have already been looking into the workings of FTX, but its collapse this week after facing liquidity issues has attracted fresh probes. The exchange is now facing an investigation from the US Department of Justice (DOJ), according to a report by The Wall Street Journal.
The probe is focused on the exchange’s US affiliate – FTX.US. Officials believe some of the crypto-assets listed on the platform, as well as FTX’s lending product, could potentially constitute securities, in which case, FTX’s handling of customer assets might also overstep laws governing US exchanges.