Breaking Justin Sun Only Promises to Save His Own Community From the FTX Fiasco

10 November 2022, 19:58 GMT+0000
Updated by Ryan James
10 November 2022, 22:00 GMT+0000
In Brief
  • FTX has reached a deal with Tron to make swap Tron tokens held on FTX to an external wallet.
  • The news comes as FTX CEO Sam Bankman-Fried scrambles to shore up liquidity to make customers whole.
  • Earlier today, Justin Sun confirmed the news.
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Tron CEO Justin Sun has promised to help FTX’s customers holding any of Tron’s five tokens to swap assets to external wallets.

FTX International announced that it had officially reached an agreement with Tron. The agreement will allow FTX customers who hold TRX, BTT, JST, SUN, and HT to swap their tokens from their custodial wallets to external wallets 1:1, starting on Nov. 10, 2022, at 18:30 UTC.

According to FTX CEO Sam Bankman-Fried, the deal with Tron is the first step in bringing liquidity to users. This comes after the billionaire initially underestimated FTX’s ability to honor withdrawals. 

According to FTX CEO Sam Bankman-Fried, the deal with Tron is the first step in bringing liquidity to users after he initially underestimated FTX’s ability to honor withdrawals. His rival-turned-ally Justin Sun agreed.

SBF also admitted he had failed to give customers regular updates after Sunday’s bank-run scenario.

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Now, Bankman-Fried said his top priority is “doing right by users” and that FTX is pulling out all the stops to raise liquidity ‘this week.’ FTX COO Constance Wang is reportedly involved in the fundraising.

The company is exploring entering nonbinding agreements (term sheets) with potential investors. FTX users with frozen funds will be the first recipients of any liquidity raised, and FTX will use any remaining money to pay back investors and employees. In an employee memo seen by the New York Times, SBF said that there were many deals in the pipeline but that those deals may not materialize.

Alameda Research, the quant trading firm at the heart of the FTX crisis, will also be closed.

These seemingly responsible moves give hope that FTX customers may yet be made whole

Stay tuned as we track FTX’s liquidity raise.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.