Sam Bankman- Fried has emerged as the "lender of last resort" for companies in the sector.
The chief executive of FTX gave a $250 million loan to the struggling lending firm BlockFi last month and tried to bail out the exchange before it filed for Chapter 11 this week.
As digital asset prices have plummeted and Bankman-Fried has propped up the industry, major firms have struggled to repay their loans.
J.P. Morgan, who built his influence by bailing out several New York banks in 1907, is being compared to theCrypto billionaire by some.
SkyBridge Capital founder Anthony Scaramucci referred to Sam Bankman-Fried as the new John Pierpont Morgan. The original J.P. Morgan did not bail out the markets.
Bankman- Fried couldn't justify bailing out Celsius Network.
The failed lending firm, which filed for Chapter 11 bankruptcy this week, had a $2 billion hole in its balance sheet.
Celsius froze all of its customers' accounts in June as it struggled to deal with the crash of thecryptocurrencies. FTX decided not to give them a loan at that time.
Alex Mashinsky stated in a statement that the firm's Chapter 11 filing would lead to a restructuring process.
"When we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company," he said.
It would appear that Bankman-Fried doesn't believe in the future of the company.
FTX founder Sam Bankman- Fried gets by on four hours of sleep and six screens. The tough questions facing his company are broken down by Insiders.
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