FTX Bankruptcy: From Binance to Voyager, here’s how crypto companies exposed the collapsed crypto exchange

After major crypto exchange FTX filed for U.S. bankruptcy protection on Friday, the crypto industry is bracing for further collapse. Some FTX investors say they are reducing their investments to zero.

Other crypto companies that may be exposed to FTX by holding tokens on an exchange or by owning FTX’s native tokens, FTTfell about 94% last week.

While the extent of the spread across crypto markets remains unclear, here are a few companies that have provided information about their exposure to FTX.

Binance

Binance CEO Changpeng Zhao raised concerns among investors on November 6 when he said in a tweet that Binance would sell FTT holdings.

Zhao told a Twitter space on Monday that Binance had previously held $580 million worth of FTT (about Rs 4,705 crore), of which “we only sold a pretty small portion, we still kept a big bag”.

BlockFi

FTX has signed an agreement with the option to buy crypto lenders BlockFi for up to $240 million, BlockFi said in July.

BlockFi said on November 11, it is suspending customer withdrawals until it becomes clear about FTX.

Network degree C

Cryptocurrency Lenders Go bankrupt Network degree C said in a tweet on Nov 11 that it has 3.5 million Serum tokens (SRM) on FTX as well as a loan of around $13 million (about Rs 105 crore) to FTX-affiliated trading company Alameda Research. The loans are under-collateralized, mostly in FTT tokens, Celsius said.

Coinbase

Coinbase Global said in a blog post on November 8 that it has $15 million worth of deposits on FTX. It said it has no exposure to FTT, no exposure to Alameda Research and no loans to FTX.

It said it had $5 billion in cash and cash equivalents at the end of the third quarter.

CoinShares

Cryptocurrency asset management firm CoinShares has a $30.3 million investment in crypto exchange FTX, CoinShares said in a statement Nov.

CoinShares CEO Jean-Marie Mognetti said the group’s financial health remained “strong”, adding that the group’s net asset value at the end of the third quarter was £240.6 million. 282.51 million USD).

Crypto.com

Singapore-based crypto exchange Crypto.com said on Nov. 14 that it transferred around $1 billion (about Rs 8,112 crore) to FTX over the course of a year, but most of it recovered, and exposure at the time of the FTX crash was less. over 10 million dollars (about Rs. 81 crore).

CEO Kris Marszalek said the company will prove all opponents wrong in assuming the platform is struggling and that it has a solid balance sheet and is not at risk.

digital galaxy

Cryptocurrency financial services firm Galaxy Digital Holdings Ltd said in its third-quarter earnings report on Nov. 9 — a day after FTX froze withdrawals — that it has an investment of 76.8 percent. million dollars into FTX, of which $47.5 million is “in the process of withdrawing”. “.

During the earnings call, Novogratz said Galaxy has more than $1 billion in cash and $1.5 billion (about Rs 12,166 crore) in liquidity.

The capital city of Galois

Hedge fund Galois Capital has half of its assets stuck on FTX, co-founder Kevin Zhou told investors in a recent letter, the Financial Times reported, estimating the amount at around $100 million.

Galois did not respond to Reuters requests for comment emailed and its website.

so bright

US Cryptocurrency Broker so bright The company said in a tweet on November 10 that Trading’s derivatives business has about $175 million (approximately Rs 1,400 crore) in funds locked on FTX.

“Genesis does not have much exposure to FTT or any other tokens issued by centralized exchanges,” the company said in a tweet on Nov.

Kraken

Cryptocurrency Exchange Kraken 10 that it held about 9,000 FTT tokens on the FTX exchange and was unaffected “in any physical way”.

Kraken also said on Sunday that it had frozen the accounts of FTX, Alameda Research and their executives.

Silvergate Capital Corporation

Silvergate Capital Corporation said on Friday, FTX accounted for less than 10% of the $11.9 billion (about Rs. 97 crore) deposits from all digital asset customers as of September 30.

The digital asset financial solutions provider also said Silvergate has no outstanding debt or investment in FTX and that FTX is not a custodian for Silvergate Exchange Network (SEN) leveraged loans. ) is collateralized with Silvergate bitcoin.

digital travel

FTX Wins Crypto Lenders Digital travel property in an auction valued at $1.42 billion (approximately Rs 11,518) at an auction in September after the lender rejected an earlier proposal calling it “an auction” low disguised as a white knight rescue”.

Voyager said on Nov. 11 that it had reopened the bidding process for the company and maintained a balance of around $3 million (approximately Rs 24 crore) at FTX as the crypto exchange was struggling. Apply for protection from creditors.

© Thomson Reuters 2022