The cryptocurrency trading company FalconX has revealed that it suffered losses from the FTX collapse.
According to the company, their assets locked up in FTX represent only 18% of their “unencumbered cash equivalents.” However, the company added that this ratio was well within its counterparty exposure limits.
FalconX insisted that despite its exposure to the now insolvent FTX, its financials remain strong as it continues to facilitate “billions of dollars” in daily trading volume for its clients. The company also stated that its monthly volume has grown “more than 80% month-on-month.”
It’s disappointing to see the continued impact of FTX’s fallout on the industry. In spite of this, FalconX is fortunate to be well capitalized and growing, 80%+ growth over the last month, trading billions daily.
See our most recent update here: https://t.co/CyyBDciiEP
— FalconX (@falconxnetwork) December 8, 2022
It’s disappointing to see the continued impact of the FTX fallout on the industry. Despite this, FalconX is lucky to be well capitalized and growing, growing over 80% in the last month, trading billions daily.
“In a 0% FTX balance sheet recovery scenario, FalconX remains one of the best capitalized firms in digital assets,” the company said, adding that it was “highly liquid” with a debt-to-equity ratio of 4% and with more than 80% of its balance sheet in regulated US banks.
Despite suffering losses in the FTX collapse, FalconX maintained that it had no exposure to Genesis, Alameda Research or BlockFi.
Since FTX’s abrupt shutdown, some cryptocurrency firms have downplayed their exposure to the failed exchange, while others have been caught lying to their investors and clients about the impact the crash had on them.
BlockFi, which initially denied holding most of its assets in custody at FTX, filed for Chapter 11 bankruptcy on November 28.
On December 5th, Blockchain-based institutional capital exchange Maple Finance cut all ties with Orthogonal Trading due to its alleged misrepresentation of finances following the FTX collapse. According to Maple Finance, Orthogonal Trading had been “operating while effectively insolvent.”
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