The FTX crash had a serious impact on the broader cryptocurrency market. However, some companies bore the brunt of the impact. It was also directly affected by the storm brought on by the embattled cryptocurrency exchange. Which companies were affected by the FTX collapse?
Cryptocurrency projects affected by the FTX collapse
Genesis
Institutional trading firm Genesis announced on November 11 that the firm has $175 million in locked funds in its trading account at FTX. However, the company noted that this had no impact on its market making activities. Moreover, the trading company stated that this risk is not important to the business. He declared that he would not hinder his activities in this direction.
As part of our goal in providing transparency around this week’s market events, the Genesis derivatives business currently has ~$175M in locked funds in our FTX trading account. This does not impact our market-making activities.
— Genesis (@GenesisTrading) November 10, 2022
Although the company has business relationships with the cryptocurrency exchange, the firm also disclosed that it has no ongoing lending relationships with FTX or Alameda Research.
Galaxy Digital
Galaxy Digital is a blockchain financial services company. The company recently announced that it has a $76.8 million investment in FTX. In the amount, the firm emphasized that $47.5 million is currently in the process of being withdrawn. Despite this investment, the company underlined that it still has $1.5 billion in liquidity. That includes $1 billion in cash and $235.8 million in stablecoins that could cover their losses.
Sequoia Capital
In a letter addressed to its limited partners, venture capital firm Sequoia Capital announced that its $213.5 million investment in FTX and FTX US companies is now worth $0. The firm acknowledged that the FTX debacle increased its solvency risk. Despite this, the venture capital firm noted that the risk is limited. He also claimed that he was balanced by his earnings. The firm wrote in a letter:
The $150 million loss was offset by ~$7.5 billion in realized and unrealized gains in the same fund. So the fund is in good standing.
The firm also underlined that it is ‘in the business of taking risks’. In this direction, he suggested that some investments will have positive and some negative aspects.
Galois Capital
Hedge fund Galois Capital admitted that some of its funds are stuck in FTX. According to the Financial Times, half of the firm’s capital is still tied to FTX. Based on the firm’s assets under management as of June, the amount is estimated at approximately $100 million.
BlockFi
As the FTX crash hit the market, crypto lending firm BlockFi also acknowledged that it has invested significantly in FTX and associated institutional assets. However, the firm denied rumors that the majority of its assets are held on the FTX exchange. In a statement, the firm wrote:
We continue to work to get BlockFi’s credits back. However, we expect a delay in the recovery of obligations owed to us by FTX as FTX goes through the bankruptcy process.
On November 11, the company limited its activities on its platform. It has also stopped customer withdrawals. The firm also advised its clients not to deposit funds into BlockFi wallets or Interest Accounts.
Crypto.com
Kris Marszalek, CEO of Crypto.com exchange, recently assured clients that the $1 billion in assets the exchange moved to FTX has been fully recovered. The CEO underlined that the firm’s risk is only below $10 million. Marszalek also told users that the exchange will not stop withdrawals. It also denied allegations that the exchange used its native token as collateral for its loans.
wintermute
Wintermute made headlines after losing $160 million in a hack. The crypto market maker has now also admitted that he has some money left on the FTX exchange. He shared the following on the subject:
We have money left in FTX. While this is not ideal, this amount is within our risk tolerances. Also, it does not have a significant impact on our overall financial situation.
5/ We do have remaining funds on FTX, and while this is not ideal, the amount is within our risk tolerances and does not have a significant impact on our overall financial position.
— Wintermute (@wintermute_t) November 9, 2022
However, the company did not disclose the amount it is holding in FTX. He stated that this amount is within the risk tolerance. He also assured his followers that it would not have a huge impact on his finances.
Multicoin Capital
Venture capital firm Multicoin Capital reportedly has approximately $863 million in assets frozen in FTX. According to The Block, the firm emphasized that 10% of the exchange-linked assets within the Master Fund are under its management.
CoinShares
Digital asset trading group CoinShares has announced limited investment in the FTX exchange in an announcement posted on Twitter. The firm noted that it was able to reduce its total risk to $31.5 million. He also reassured his community that the firm’s financial position remains strong.
1/ CoinShares confirms robust financial health and quantifies limited exposure to the FTX Exchange, while confirming that the Group has no exposure to FTX’s sister company, Alameda Research.
XBT Provider and CoinShares Physical ETPs remain fully hedged and collateralized. pic.twitter.com/FmQHrC3g4K
— CoinShares (@CoinSharesCo) November 10, 2022
The risk consists of approximately $3.1 million worth of Bitcoin, $1 million worth of Ethereum, $25.9 million worth of USD Coins and $110,000 worth of other assets.
Amber Group
Financial services firm Amber Group has announced that it is an active trading participant on the FTX exchange. He also noted that there are still withdrawals to be processed. Despite this, the company stated in an announcement that the exposure is limited to just less than 10% of its total trading capital. The firm assured the community that the amount did not threaten its liquidity or operations.
Pantera Capital
Investment firm Pantera Capital stated that it suffered some risks and losses due to the collapse of FTX. This is due to the firm’s acquisition of Blockfolio, which is in FTX Token and stock FTX. According to the statement, the firm liquidated as many FTTs as it could on November 8.
Nexo
Crypto lender Nexo admitted to having a small loan to Alameda Research. However, the firm emphasized that this amount is less than 0.5% of its total assets. The loan was fully secured with digital assets and was sold, according to an announcement. The firm also managed to avoid a potential loss of $219 million by withdrawing its entire balance from the FTX exchange.
Others
Apart from the companies mentioned above, companies like Nestcoin also laid off some of their employees because they could not withdraw their assets in FTX. Meanwhile, decentralized finance firm Liquid Meta also announced that it holds approximately $7.5 million in FTX. Additionally, Voyager Digital, which is scheduled to be acquired by FTX, announced that the bidding process has reopened. FTX’s filing for bankruptcy also estimates it has more than 1 million creditors.
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