--- title: "Crypto CEO Warns That Exchanges Are “Secretly Already Insolvent”" description: "Crypto billionaire and founder of exchange FTX Sam Bankman-Fried says many cryptocurrency exchanges \"are already secretly insolvent.\"" date: "2022-06-29" modified: "2022-06-29" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/the-byte/crypto-ceo-exchanges-secretly-insolvent" categories: - "Blockchain" - "Cryptocurrency" - "Future Society" tags: - "cryptocurrencies" - "cryptocurrency exchanges" - "the digest" --- # Crypto CEO Warns That Exchanges Are “Secretly Already Insolvent” ![Crypto billionaire and founder of exchange FTX Sam Bankman-Fried says many cryptocurrency exchanges "are already secretly insolvent."]() *\Image: Futurism\* ## Huffing Insolvents Crypto billionaire and founder of exchange FTX Sam Bankman-Fried is pouring hundreds of millions of dollars into cryptocurrency exchanges to keep them from going under amid a growing crypto crisis, [*Forbes* reports](). In fact, he argues, the crypto exchange market has already slid far further than executives are willing to admit. "There are some third-tier exchanges that are already secretly insolvent," Bankman-Fried told *Forbes*. In other words, the crypto market is doing even worse than you might think — which isn't exactly confidence inducing, given the fact that exchanges are [already in deep trouble]() amid the [ongoing blockchain crash](). "We’re willing to do a somewhat bad deal here, if that’s what it takes to sort of stabilize things," he added. ## Bleeding Money The value of OG cryptocurrency Bitcoin has been plummeting in fits and starts this year, wiping out [more than $200 billion]() off the crypto market in just one day earlier this month. Meanwhile, crypto lenders are facing [class-action lawsuits](), [laying off thousands](), [halting withdrawals]() — and even [shutting down]() altogether. Making matters worse, the industry operating within a relative regulatory vacuum, making them particularly vulnerable to scams and hacks. In fact, a number of these exchanges operating within and outside of the US have already lost hundreds of millions of dollars in crypto due to hacks, *Forbes* reports. Worst of all, at least according to Bankman-Fried, it may already be too late for some. "There are companies that are basically too far gone and it's not practical to backstop them for reasons like a substantial hole in the balance sheet, regulatory issues, or that there is not much of a business left to be saved," he told the publication. Where that leaves the crypto market — or what's left of it — remains to be seen. But billionaire investors like Bankman-Fried are likely to have the last laugh if the market does rebound. **READ MORE:** [Bankman-Fried Warns: Some Crypto Exchanges Already “Secretly Insolvent”]() \[*Forbes*\] **More on crypto:** *[Yuga Labs Files Furious Lawsuit Against Guy Minting Copies of Bored Apes]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()