Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, which filed for Chapter 11 bankruptcy last week, is still scrambling to raise new capital in a bid to fill his company's $8B shortfall, The Wall Street Journal reported Tuesday, citing people with knowledge on the situation. The FTX founder, who resigned as CEO last week, along with a few remaining employees were said to have reached out to investors over the weekend to save the exchange from its liquidity crunch and to repay its users. SBF, in his search of rescue financing, was reportedly already in talks with a number of investors last week to raise $9.4B , though there has been little progress so far. Coinbase ( COIN ) CEO Brian Armstrong told CNBC recently that he has no idea "why investors would put money" into SBF's imploding crypto empire . FTX's abrupt bankruptcy, triggered by its multi-billion dollar shortfall and an overwhelming amount of customer withdrawals, could involve over 1M customers, The WSJ noted, citing court filings . As part of its bankruptcy proceedings, John J. Ray III, who succeeded SBF as CEO, has engaged consulting firm Alvarez & Marsal North America LLC as well as law firm Sullivan & Cromwell LLP, the filings showed. The new FTX chief has started to work on securing customer assets by suspending trading and withdrawals on its trading platforms. FTX did not immediately respond to Seeking Alpha's request for comment. Earlier this week, (Nov. 14) FTX downfall is said to be proved by Manhattan U.S. attorney's office .
