Crypto derivatives exchange Bybit has launched a new support fund to help institutional traders access liquidity following the FTX crash, an event that triggered a new wave of panic selling across the digital asset space.
The support fund, valued at $100 million, is available to market makers and high-frequency trading institutions experiencing financial or operational difficulties following the collapse of FTX earlier this month, Bybit revealed on the 24th of november. Funds will be distributed to eligible applicants at a 0% interest rate.
To be eligible, institutional traders must be active on Bybit or other exchanges. The maximum amount distributed per applicant is $10 million and funds must be used for spot and perpetual Tether (USDT) trading on Bybit.
FTX, once the world’s second-largest cryptocurrency exchange, filed for Chapter 11 bankruptcy protection law on November 11, after a coordinated bank run exposed the company’s insolvency. A scandal ensued after it became apparent that CEO Sam Bankman-Fried was mixing funds between FTX and sister company Alameda Research, resulting in an $8 billion hole in FTX’s balance sheet. As Cointelegraph reported, the 50 largest FTX creditors are owed more than $3 billion.
Several companies exposed to FTX have reported financial and liquidity constraints due to their collapse. Bitcoin (BTC) lender BlockFi is considering filing for bankruptcy, while Digital Currency Group-backed Genesis Global Trading recently halted further lending.
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