Bankman-Fried's FTX faces potential bankruptcy as liquidity dries up - report

Sam Bankman-Fried warned FTX investors that his cryptocurrency exchange would need to file for bankruptcy unless it can garner more capital, Bloomberg reported Wednesday, citing a person familiar with the matter. Prior to Binance retreating from its initial offer to buy the non-U.S. portion of FTX, Bankman-Fried, a 30-year-old billionaire, told investors that his company faced up to $8B in a liquidity shortfall, the person told Bloomberg. FTX did not immediately respond to a request for comment by Seeking Alpha. Looking at intraday price action, bitcoin ( BTC-USD ) cratered as much as 15.2% to $15.64K at around 5:30 p.m. ET, and ethereum ( ETH-USD ) tumbled as much as 15.5% to $1.11K. Earlier this week, Binance to dump FTX Token holdings after report parses finances of Bankman-Fried's Alameda .