Crypto derivatives exchange Bybit has launched a new support fund to help institutional traders access liquidity following the FTX bankruptcy, which sparked a new wave of panic selling across the digital asset sector. .
BybitAnnounced on November 24thA support fund worth $100 million will reportedly be available to market makers and high-frequency trading institutions struggling financially or operationally following the FTX bankruptcy earlier this month. The funds will be distributed to eligible applicants at a 0% interest rate.
The target audience is institutional investors active on Bybit or other exchanges. The distribution limit per applicant is $10 million, and the funds must be used for spot trading and Tether (USDT) perpetual trading on Bybit.
FTX, once the world’s second-largest cryptocurrency exchange, filed for Chapter 11 bankruptcy protection on November 11 after it was found to be insolvent. A scandal erupted when it was revealed that CEO Sam Bankman-Fried had intervened between FTX and sister company Alameda Research.
Several companies associated with FTX have been affected by its bankruptcy. Bitcoin (BTC) lending company BlockFi is considering bankruptcy, and Digital Currency Group-backed Genesis Global recently stopped originating new loans.
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