Sam Bankman-Fried, the founder of FTX, is pouring hundreds of millions of dollars into cryptocurrencies to keep them afloat.
He says that the market has already fallen far more than executives admit.
Bankman- Fried told Forbes that there are some third-tier exchanges that are secretly insolvent.
The market is doing worse than you might think, given that exchanges are already in trouble.
If that's what it takes to sort of stabilizing things, we're willing to do a bit of a bad deal here.
A single day earlier this month, the value of the OGcryptocurrencies fell to less than $200 billion, wiping out much of the market's value.
Thousands of people have been laid off and withdrawals have been halted because of class-action lawsuits.
The industry is vulnerable to scam and hacks because they are operating within a regulatoryvacuum.
A number of these exchanges have lost a lot of money due to hacks.
It may be too late for some.
"There are companies that are too far gone and it's not practical to backstop them for reasons such as a substantial hole in the balance sheet, regulatory issues, or that there is not much of a business left to be saved," he said.
What's left of the market is not yet known. If the market does rebound, Bankman-Fried is likely to have a good time.
The Bankman-Fried Warns said that some of the exchanges were already insolvent.
Yuga Labs filed a lawsuit against a guy who was minting copies of Bored Apes.
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