It should be noted that there are indeed plenty of problems in the cryptocurrency niche. For example, last week Celsius blocked user withdrawals of coins, as we wrote about in a separate story. Also on the verge of insolvency was Three Arrows Capital, co-founded by the legendary Su Zhu.

In other words, many in the decentralised asset industry are in need of financial help. And from the looks of it, some of them will get it.

Why cryptocurrencies might not fall

Bankman-Fried said in a recent interview that a further market decline could have an avalanche effect, i.e. a subsequent collapse triggered by the current slump. This is a scenario that cryptocurrency platform FTX would like to avoid. Here is a relevant quote from Sam.

I do think we have an obligation to seriously consider intervening in the market, even if it would not be financially beneficial for us. Even if we didn’t cause or participate in the collapse. It is good for the industry, and I want to do things that can help it grow and prosper.

In other words, an entrepreneur is willing to help with money for those big companies that need it. This, among other things, can save them from bankruptcy and insolvency. As the legendary Three Arrows Capital crypto fund has shown, anyone can lose money and get into debt in the coin industry altogether.

FTX CEO Sam Bankman-Fried

According to Decrypt’s sources, Sam Bankman-Fried is one of the crypto-sphere’s most famous personalities. He became a billionaire in his early 30s, made the Forbes rankings and now owns a crypto exchange that is an active competitor to a major player in the niche called Binance. So Sam has both the capital and the clout to make a significant difference in the market. And he benefits from preventing a deterioration in trading, as it is a bullish trend that could bring the cryptocurrency company the biggest profit.

It is important to note that exchanges make money even in the worst market conditions. This is especially true for sharp drops in coin prices, which result in liquidation of traders' positions.

Bankman-Fried has not yet announced an exact plan of action – he only mentioned the fact that FTX will buy Liquid Group in February 2022. Recall that Liquid Group received a large loan from FTX back in August 2021, which helped the company to deal with the aftermath of a cyber-attack that caused losses of at least $90 million. Here’s a relevant quote from Sam.

We stepped in about 24 hours later and provided Liquid Group with a fairly broad line of credit so that they could cover all their claims, provide for customers, while thinking about a long-term solution to the problem that had arisen.

FTX CEO Sam Bankman-Fried

As we have already noted, there are currently two “casualties” in the crypto market from Bitcoin’s fall – the Celsius platform and the Three Arrows Capital fund. Both are big players, and their collapse could lead to a further collapse of the entire coin market. By the way, Celsius already has a more detailed plan for recovering operations: an announcement to that effect was made on the platform’s blog the day before.

Investment platform BnkToTheFuture will play a key role in Celsius’ recovery plan. This was announced by its CEO Simon Dixon:

I believe the traditional finance sector will not have a timely solution to the Celsius problem, as we have seen in the past with the Mt. Gox exchange. It still has outstanding debts to its investors ten years later.

Buying crypto-assets

Celsius’ rehabilitation plan, according to Dixon, will be similar to a similar process that BnkToTheFuture previously conducted with crypto exchange Bitfinex. As a reminder, Bitfinex launched the UNUS SED LEO (LEO) token in May 2019 to raise a billion dollars in partnership with BnkToTheFuture. These funds went towards recovering the trading platform’s financial losses related to the incident around the Panamanian bank Crypto Capital.


We think such an idea seems interesting. After all, FTX is one of the most popular crypto exchanges, while Sam is one of the richest representatives of the crypto industry in general. So there's plenty of money in the company's representatives. It's just a question of how and on what terms to use it.