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Factbox-From Binance to Voyager, Crypto Firms’ Exposure to FTX Is Coming to Light


Reuters

FILE PHOTO: Binance and FTX logo designs are seen in this illustration taken, November 8,2022 REUTERS/Dado Ruvic/Illustration/File Photo Reuters

LONDON (Reuters) – After significant crypto exchange FTX declared U.S. insolvency security on Friday, the crypto market is bracing for additional fallout.

Some of FTX’s financiers have actually stated they are composing their financial investment to no.

Other crypto companies might be exposed to FTX by having actually held tokens on the exchange or by owning FTX’s native token, FTT, which plunged around 94% recently.

While the degree of the contagion throughout crypto markets stays uncertain, here are some companies who have actually provided details about their direct exposure to FTX.

BINANCE

Binance Chief Executive Changpeng Zhao triggered issues amongst financiers on Nov. 6 when he stated in a tweet that Binance would offer its holdings of FTT.

Zhao informed a Twitter areas occasion on Monday that Binance had actually formerly held $580 million worth of FTT, of which “we just offered rather a little part, we still hold a big bag”.

BLOCKFI

FTX signed a handle an alternative to purchase crypto loan provider BlockFi for approximately $240 million, BlockFi stated in July.

BlockFi stated on Nov. 11 it was stopping briefly customer withdrawals up until there was clearness on FTX.

CELSIUS NETWORK

Bankrupt crypto lending institution Celsius Network stated in a tweet on Nov. 11 that it had 3.5 million Serum tokens (SRM) on FTX along with around $13 million in loans to FTX-linked trading business Alameda Research. The loans were under-collateralised, mainly by FTT tokens, Celsius stated.

COINBASE

Coinbase Global Inc stated in a post on Nov. 8 that it had $15 million worth of deposits on FTX. It stated it had no direct exposure to FTT, no direct exposure to Alameda Research, and no loans to FTX.

It stated it had $5 billion in money and money equivalents at the end of Q3.

COINSHARES

Crypto property supervisor CoinShares has $303 million worth of direct exposure to crypto exchange FTX, CoinShares stated in a declaration on Nov. 10.

CoinShares CEO Jean-Marie Mognetti stated that the group’s monetary health stays “strong”, including that its net possession worth at the end of Q3 was 240.6 million pounds ($28251 million).

CRYPTO.COM

Singapore-based crypto exchange Crypto.com stated on Nov. 14 it had actually moved about $1 billion to FTX throughout a year, however the majority of it was recuperated and direct exposure at the time of FTX’s collapse was less than $10 million.

CEO Kris Marszalek stated the company would show all cynics incorrect on the platform remaining in problem, which it has a robust balance sheet and took no threats.

GALAXY DIGITAL

Crypto monetary services business Galaxy Digital Holdings Ltd stated in its third-quarter incomes declaration on Nov. 9 – the day after FTX froze withdrawals – that it had a $768 million worth of direct exposure to FTX, of which $475 million was “in the withdrawal procedure”.

In the incomes call, Novogratz stated Galaxy had more than $1 billion in money and $1.5 billion in liquidity.

GALOIS CAPITAL

Hedge fund Galois Capital had half its properties caught on FTX, co-founder Kevin Zhou informed financiers in a current letter, the Financial Times reported, approximating the total up to be around $100 million.

Galois did not react to Reuters remark demands sent out by means of e-mail and its site.

GENESIS

U.S. cryptocurrency broker Genesis Trading’s derivatives service has roughly $175 million in locked funds on FTX, the business stated in a tweet on Nov. 10.

” Genesis has no product direct exposure to FTT or any other tokens released by central exchanges,” the company stated in a tweet on Nov. 9.

KRAKEN

Cryptocurrency exchange Kraken stated on Nov. 10 that it held about 9,000 FTT tokens on the FTX exchange and was not impacted “in any material method”.

Kraken likewise stated on Sunday it had actually frozen the accounts of FTX, Alameda Research and their executives.

SILVERGATE CAPITAL CORP

Silvergate Capital Corporation stated on Friday FTX represented less than 10% of $119 billion deposits from all digital possession consumers since Sept. 30.

The monetary options service provider to digital properties likewise stated Silvergate has no exceptional loans or financial investments in FTX, and FTX is not a custodian for Silvergate’s bitcoin-collateralized Silvergate Exchange Network (SEN) take advantage of loans.

VOYAGER DIGITAL

FTX won crypto loan provider Voyager Digital’s possessions in a $1.42- billion quote at an auction in September months after the lending institution rejected an earlier proposition and called it a “low-ball quote dressed up as a white knight rescue”.

Voyager stated on Nov. 11 it had actually resumed the bidding procedure for the business and preserved a balance of around $3 million at FTX when the embattled crypto exchange applied for defense from lenders.

($ 1 = 0.8516 pounds)

( Reporting by Elizabeth Howcroft in London and Mehnaz Yasmin and Medha Singh in Bengaluru; Editing by Jan Harvey)

Copyright 2022 Thomson Reuters

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