FTX reportedly scrambling to manage through fallout of Binance deal

Yahoo Finance crypto reporter David Hollerith details the latest in the ongoing FTX-Binance fallout.

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RACHELLE AKUFFO: Sam Bankman-Fried tweeting earlier today that the company's liquidity issues were with FTX International, adding that FTX US uses are fine. But hours later, it appears that statement might not be true. Yahoo Finance's David Hollerith has been following the story. David, what do we need to know?

DAVID HOLLERITH: Yeah, so the announcement comes on FTX US's website. And obviously, as you pointed out, it came right after-- about a few hours after Bankman-Fried said that the whole situation of liquidity problems was all about FTX International, and that the US exchange, its US subsidiary, FTX US, all the users were fine. So obviously, this inconsistency here is something that a lot of people have looked at.

And, you know, it is a big problem for FTX International, what's going on. Since the deal with Binance has fallen through yesterday afternoon, the team has been scrambling to try and find other people who-- other ways to raise money in the event that they have a way to fill their balance sheet hole, which has been said by sources to be anywhere between $6 and $12 billion.

Now, again, cryptocurrency prices have fluctuated a lot. And that could have to do with the consistency. So we still don't have a lot of clarity yet in terms of what's been going on. US regulators and regulators in Japan and Europe have also been circling around FTX International, concerned about what has been going on potentially behind the scenes. So there's a lot to keep following.

And Tron, the cryptocurrency-- it's sort of a smaller cryptocurrency-- has recently come out as offering a credit facility for older investors who have the Tron cryptocurrency on the platform. So that's going to be about $3 million per week-- or sorry, $13 million per week to try and save Tron investors as of now. So that's the first of what FTX and Sam Bankman-Fried, the CEO, would hope would be sort of many people coming together to try and save users at this point.

SEANA SMITH: David, when it comes to the difference between FTX US and FTX International and the exposure there to Alameda, I guess, what are you hearing from that standpoint? And how do you see that affecting the collapse here?

DAVID HOLLERITH: Yeah, it's a really good question. I mean, they're supposed to be totally separate from what we hear. However, that being said, there is a lot of crossover. And, you know, Sam Bankman-Fried has previously said that FTX International and Alameda themselves were completely separate. And there are a lot of reports saying that that is not the case and that, in fact, Alameda may have even been using customer assets.

So on the surface, these look like two different companies, but they very well could be more connected than we could think. Alameda, for its part, has sort of played market maker for both companies. So more to follow in terms of what that could mean.

RACHELLE AKUFFO: All right, well, thank you for getting us up to speed on that. Dave Hollerith, thanks so much.