Bybit has launched a new support fund to help institutional traders access liquidity in the wake of the FTX collapse.
The support fund, valued at $100 million, is available to market makers and high-frequency trading institutions struggling with financial or operational difficulties following the collapse of FTX earlier this month.The 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 the funds must be used for spot and Tether perpetual trading on Bybit.
Once the second-largest cryptocurrency exchange in the world, FTX filed for Chapter 11 bankruptcy on Nov. 11 after a bank run exposed the firm for being insolvent. A scandal ensued after it became apparent that CEO Sam Bankman-Fried was comingling funds between FTX and sister firm Alameda Research, which resulted in an $8 billion hole in FTX’s balance sheet. Several companies exposed to FTX have reported financial and liquidity constraints due to its collapse. Bitcoin lender BlockFi is considering bankruptcy, while the
