Goldman Sachs to Spend 'Tens of Millions' on Discounted Crypto Investments After FTX Implosion: Report
Goldman Sachs (GS), one of the world's largest investment banks, is looking to spend tens of millions of dollars on crypto firms whose valuations have been hit after the implosion of FTX, Reuters reported on Tuesday.
Crypto exchange FTX filed for chapter 11 bankruptcy on Nov. 11 following worrying revelations about its financials and relationship to trading firm Alameda Research.
The FTX fiasco was the latest blow to an industry that has seen several high-profile bankruptcies in the past few months amid depressed markets. The contagion has spread to other firms, such as crypto lender BlockFi, which declared bankruptcy in the same month.
"We do see some really interesting opportunities, priced much more sensibly," Mathew McDermott, Goldman's head of digital assets, told Reuters. Goldman sees an increased need for trustworthy players in the industry, which banks see as an opportunity, according to McDermott.
The bank did not respond to CoinDesk's request for comment at the time of publication.