While the FTX crash may have had a severe effect on the broader cryptocurrency market, Some companies bore the brunt of the impact and were directly affected by the storm brought by the beleaguered cryptocurrency exchange.
Here are some of the affected companies that Cointelegraph tracked as of November 17, 2022.
Genesis
Institutional trading firm Genesis announced on Nov. 11 that it had $175 million in funds locked up within the firm’s FTX trading account. However, the company noted that this does not have an impact on its market making activities. Furthermore, the trading firm clarified that this exposure is not material to the business and will not interfere with its operations.
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
As part of our goal to provide transparency around this week’s market events, the Genesis derivatives business currently has ~$175 million in funds locked up in our FTX trading account. This does not affect our market making activities.
Although the company had business relationships with the cryptocurrency exchange, the firm also clarified that it does not have a current lending relationship with FTX or Alameda Research.
Galaxy Digital
Blockchain financial services firm Galaxy Digital recently disclosed its $76.8 million exposure to FTX. Within the amount, the firm highlighted that USD 47.5 million are already in the process of being withdrawn. Despite the exposure, the company noted that it still has $1.5 billion in liquidity.. This includes $1 billion in cash and $235.8 million in stablecoins that can cover their losses.
Redwood Capital
In a letter to its limited partners, private equity firm Sequoia Capital announced that its $213.5 million investment in the FTX and FTX US companies is now worth 0. The firm admitted that the FTX debacle caused a solvency risk. Despite this, the venture capital firm stated that its exposure is limited and is offset by its profits. The firm wrote in a letter:
“The $150M loss is offset by ~$7.5B in realized and unrealized gains in the same fund, so the fund remains in good shape.”
The company also noted that they are in the “risk-taking business,” suggesting that some investments will have their advantages while others will have their drawbacks.
Gallois Capital
The hedge fund Galois Capital has admitted that part of your funds are stuck in FTX. In a letter to investors obtained by the Financial Times, the firm is reported to have half of its capital still tied up in FTX. The amount is estimated at about USD 100 million, based on the firm’s assets under management through June.
BlockFi
As the FTX crash hit the market, cryptocurrency lending firm BlockFi has also admitted to having “significant exposure to FTX and associated corporate entities”. However, the firm denied rumors that most of its assets are held within the FTX exchange. In an update, the firm wrote:
“While we will continue to work to recover all liabilities owed to BlockFi, we expect that recovery of the liabilities owed to us by FTX will be delayed while FTX works through bankruptcy.”
On November 11, the company limited activities on its platform and stopped customer withdrawals. The company also advised customers not to deposit into their BlockFi wallets or interest accounts.
crypto.com
Kris Marszalek, the CEO of the Crypto.com exchange, recently assured his clients that the $1 billion worth of assets that the exchange moved to FTX were fully recovered. The CEO highlighted that his exposure to the firm is only less than USD 10 million. Marszalek also told users that the exchange will not stop withdrawals and denied accusations of using its native token as collateral for its loans.
wintermute
Cryptocurrency market maker Wintermute, the firm that made headlines after losing $160 million in a hack, has also admitted that it had some remaining funds on the FTX exchange. They have tweeted:
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
5/ We have funds remaining in 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.
Although the company did not disclose the amount it held in FTX, it assured its followers that the amount is within its risk tolerance and will not have a major impact on its financial position.
Multicoin Capital
Venture capital firm Multicoin Capital reportedly has around $863 million in assets frozen on the FTX exchange. In a letter reported by The Block, the firm highlighted that it has 10% of assets under management within its Master Fund which is stuck on the exchange.
Digital asset trading group Coinshares also revealed its limited exposure to the FTX exchange in an announcement posted on Twitter.. The firm noted that it was able to reduce its overall exposure to $31.5 million and assured its community that the firm’s financial health remains strong.
2/ CoinShares has significantly reduced its exposure to FTX over the past week to approximately £26.6M.
—CoinShares (@CoinSharesCo) November 10, 2022
2/ CoinShares has significantly reduced its exposure to FTX over the past week to approximately £26.6 million.
The exposure consists of about $3.1 million in Bitcoin (BTC), $1 million in Ether (ETH), $25.9 million in USD and USD Coin (USDC), and $110,000 in other assets.
amber group
Financial services company Amber Group has announced that you have been an active participant on the FTX exchange and that you still have withdrawals to process. Nonetheless, the company said in a statement that exposure is only limited to less than 10% of its total trading capital. The company assured the community that the amount does not threaten its liquidity or its operations.
Capital Panther
In a blog post, investment firm Pantera Capital noted that it had suffered some risks and losses from the FTX collapse. This came from Blockfolio’s acquisition of the firm, which was in FTX Tokens (FTT) and FTX shares. According to the announcement, the firm liquidated all the FTT it could on November 8.
Nexus
While the cryptocurrency lender Nexus admitted having a small loan to Alameda Research, the firm noted that the amount was less than 0.5% of its total assets. The loan was fully collateralized by digital assets and was sold according to an announcement. The firm was also able to dodge a potential $219 million loss by withdrawing its entire balance from the FTX exchange.
Apart from the companies mentioned above, companies like Nestcoin fired to part of his staff by not being able to withdraw their assets in FTX. Meanwhile, decentralized finance firm Liquid Meta announced that it also had around $7.5 million in FTX. Also, Voyager Digital, which was to be acquired by FTX, announced the reopening of its bidding process. FTX’s bankruptcy filing also estimates that it has more than a million creditors.
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