It has been almost two months since the crypto exchange FTX filed for the 11th capital, but the negative details of what happened during the crisis continue to emerge even today. According to a new Forbes report, USDT stablecoin provider Tether received a call from disgraced FTX founder Sam Bankman-Fried ahead of the funding filing.
As far as we know, the SBF is trying to contact all possible contacts to prevent the sinking of the FTX ship. After the initial approval, even Binance pulled out of the deal in less than 24 hours. Seeing his empire crumbling before him, SBF asked Tether for financial help, said Paolo Ardoino, CTO of Tether. Although the SBF did not explicitly say the amount it wanted, the USDT issuer “flat-line declined”. Ardoino said there was something wrong with the request and it was an easy decision for them to say no.
In a brief to Forbes, Tether CTO added:
“He suddenly asked something he had never been to before, and he wasn’t talking about $10 million. The way he spoke showed that he had a big problem. What he said is worth billions.
SBF had been making futile phone calls in early November to stop FTX from collapsing, but to no avail.
FTX: Exciting Times For Tether
USDT stablecoin provider Tether has been embroiled in a controversy over its $66 billion reserves. Tether’s USDT stablecoins still hold more than 50% of the global Bitcoin transaction volume. Despite many testing times, Tether has managed to withstand various periods of market volatility and crypto winter. They have survived some of the major stock market crashes of the past year and 2022 while meeting financial needs well.
When Terra LUNA collapsed, the USDT issuer faced $16 billion in bailouts from panicked investors. Similarly, they expected a $3 billion takeover during the collapse of FTX. Both times, Tether managed the situation.
Crypto Exchange FTX is one of Tether’s biggest affiliates. However, unlike SBF’s involvement in all the secret activities and its connections with politicians, Tether has managed to defy regulatory scrutiny. However, the main question on the minds of crypto investors is why the stablecoin developer does not publish USDT security reports.