FTX: Tron Founder Justin Sun ‘ready’ to aid the exchange

Paigambar Mohan Raj
Source: Business Today

After a period of high uncertainty and fear, it appears that the fallen crypto exchange FTX might finally see some aid. Justin Sun, founder of Tron (TRX) has come out and said that he is ready to help the troubled exchange. Sun spoke to Tom Mackenzie, anchor for BloombergTV, and revealed that he is willing to pour in billions into FTX, but they “need to do full diligence.”

According to Mackenzie, Sun said that this is a “good moment to show unity in the crypto industry.” Well, that sure is. The industry is engulfed in fear and uncertainty, unlike ever before.

FTX founder, Sam Bankman-Fried (SBF) has knocked on many doors in order to raise liquidity. According to Reuters, SBF has reached out to Sun, rival exchange OKX and stablecoin platform Tether for $1 billion each. However, Tether CTO Paolo Ardoino has clarified that the firm has no plans to invest in or lend money to the failing exchange.

Meanwhile, regulators are surrounding SBF in order to get to the bottom of this worrisome event. Authorities in Japan, Australia, and the Bahamas, where FTX is registered, have all taken respective actions. No assets belonging to FTX’s local firm could be transferred, according to the Securities Commission of the Bahamas, without the consent of a provisional liquidator who was appointed on Thursday.

Moreover, in the US, the DOJ (Department of Justice), SEC (Securities and Exchange Commission), and the California Financial Regulator have all launched investigations into the exchange.

Can FTX be rescued?

As SBF pointed out, the only way for the exchange to climb out of this hole is via fresh funding. Therefore, Sun’s help is of the utmost importance. The Tron founder has said that complete diligence is due, and more information will be available soon.

If all goes well, things could look bright for customers whose funds are still stuck on the exchange. If things do not go according to plan, well, the disaster, in that case, would continue.

At press time, FTX’s native token, FTT, was trading at $3.61, up by 31.7% in the last 24 hours.