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Investing.com – BlockFi’s bankruptcy adds a new layer of concern about the strength of the crypto ecosystem. Indeed, many firms seem exposed to the debacle of FTX because of the interconnections between them.
BlockFi’s major creditors are West Realm Shires Inc, trading name of FTX US, which has an unsecured claim of $275 million, and the Securities and Exchange Commission (SEC), which has an unsecured claim of $30 million. dollars.
However, some reassure that BlockFi was managed responsibly, unlike FTX which was described as devoid of any structure and skills necessary for the operation of such an institution.
In the wake of its bankruptcy, BlockFi has launched a lawsuit against Sam Bankman-Fried, the former executive of FTX, whom it accuses of being the source of the company’s troubles. FTX and Alameda reportedly defaulted on a $680 million loan.
BlockFi filed for bankruptcy on Nov. 28, weeks after the cryptocurrency lender said it was suspending customer withdrawals. In July, FTX had signed an agreement with a call option from BlockFi for up to $240 million.
Crypto Firms Exposed to FTX Bankruptcy
US Digital Asset Broker’s Crypto Lending Arm Genesis Trading suspended client redemptions earlier this month, citing the sudden failure of FTX. Genesis said on Nov. 10 that its derivatives business has about $175 million in funds locked on FTX. However, Genesis had no material exposure to FTX’s native token, FTT.
The general manager of Binance, Changpeng Zhao, sparked investor concern on Nov. 6 when he said the cryptocurrency exchange would sell off its FTT holdings. Zhao said that Binance previously held $580 million of TTF, of which “we only sold a fairly small portion, we still hold a big bag.”
The bankrupt crypto lender Celsius Network said on Nov. 11 that he had 3.5 million Serum (SRM) tokens on FTX as well as about $13 million in loans to FTX-linked trading firm Alameda Research. The loans were under-collateralized, mostly by FTT tokens, Celsius said.
Coinbase (NASDAQ:) said on November 8 that she had $15 million in deposits on FTX. She said she has no exposure to FTT or Alameda Research and no loans to FTX.
The Crypto Asset Manager CoinShares has $30.3 million exposure to the FTX crypto exchange, it said in a statement on November 10. CoinShares CEO Jean-Marie Mognetti said the group’s financial health remains “solid”.
The cryptocurrency exchange Crypto.combased in Singapore, said on November 14 that it had transferred about $1 billion to FTX over the course of a year, but that most of those funds had been recovered and the exposure at the time of the collapse from FTX was less than $10 million.
Cryptocurrency financial services firm Galaxy Digital said in its third-quarter earnings statement on Nov. 9 — the day after FTX froze withdrawals — that it had $76.8 million of exposure to FTX. , of which 47.5 million were “in the process of being withdrawn”.
The hedge fund Galois Capital had half of its assets trapped on FTX, co-founder Kevin Zhou told investors estimating the amount at around $100 million.
The cryptocurrency exchange kraken said on Nov. 10 that it held around 9,000 FTT tokens on the FTX exchange and was not “significantly” affected.
Silvergate Capital said on Nov. 11 that FTX accounted for less than 10% of the $11.9 billion in deposits from all digital asset customers as of Sept. 30. The digital asset financial solutions provider also said that Silvergate has no outstanding loans or investments in FTX, and that FTX is not a custodian for leveraged loans Silvergate Exchange Network (SEN ) backed by Silvergate bitcoins.
The bankrupt cryptocurrency lender Travel Digitalwhich was to sell its assets to FTX after a $1.42 billion offer made by the exchange in September, had a balance of around $3 million at FTX.
The Crypto Asset Manager Grayscalewhose flagship product Grayscale Bitcoin Trust (GBTC) is the largest fund in the world, told investors that recent market events had no impact on the operations of its products or the security of holdings in its funds.