The crypto sector is preparing for more upheaval after major cryptocurrency exchange FTX filed for US bankruptcy protection on Friday. Investors in FTX have indicated that they are writing down their original investment to zero.
By holding tokens on the exchange or holding FTX's native token, FTT, which fell by over 94 percent last week, other cryptocurrency corporations may be exposed to FTX.
Here are some companies who have provided information regarding their exposure to FTX, even though the extent of the spread throughout cryptocurrency marketplaces is yet unknown.
Binance
When he announced in a tweet that Binance would liquidate its interests in FTT on November 6, Binance Chief Executive Changpeng Zhao alarmed investors.
Zhao stated that Binance had previously owned $580 million (approximately Rs. 4,705 crore) in FTT, of which "we only sold only a little percentage, we still possess a substantial bag," at a Twitter spaces event on Monday.
BlockFi
BlockFi said in July that FTX has signed a contract with an option to purchase the cryptocurrency lender for up to $240 million.
On November 11, BlockFi said that it was halting customer withdrawals until there was clarity regarding FTX.
Centigrade Network
On November 11, the bankrupt cryptocurrency lender Celsius Network tweeted that it has 3.5 million Serum tokens (SRM) listed on FTX and about $13 million (approximately Rs. 105 crore) in loans outstanding to FTX-affiliated trading firm Alameda Research. According to Celsius, the loans lacked adequate collateral, primarily in the form of FTT tokens.
Coinbase
On November 8, Coinbase Global stated in a blog post that it had deposits on FTX totaling $15 million. It claimed it was unaffected by FTT, Alameda Research, or loans to FTX.
At the conclusion of Q3, it reported having $5 billion in cash and cash equivalents.
CoinShares
According to a Nov. 10 announcement from cryptocurrency asset manager CoinShares, the exposure to the cryptocurrency exchange FTX is approximately $30.3 million.
The group's financial condition is still "solid," according to CoinShares CEO Jean-Marie Mognetti, who also noted that its net asset value was 240.6 million pounds ($282.51 million) at the conclusion of the third quarter.
Crypto.com
FTX received nearly $1 billion (about Rs. 8,112 crore) over the course of a year from Singapore-based cryptocurrency exchange Crypto.com, but the majority of that money was recovered, and exposure at the time of FTX's failure was less than $10 million (roughly Rs. 81 crore).
CEO Kris Marszalek claimed the company would disprove all critics who claimed the platform was in peril, that it has a strong balance sheet, and that it has taken no risks.
Samsung Digital
The day after FTX froze withdrawals, on November 9, cryptocurrency financial services provider Galaxy Digital Holdings Ltd stated in its third-quarter earnings statement that it has exposure to FTX totaling $76.8 million, of which $47.5 million was "in the withdrawal process."
In the results call, Novogratz stated that Galaxy has $1.5 billion (approximately Rs. 12,166 crore) in liquidity and more than $1 billion in cash.
Galois Financial
In a recent letter to investors, co-founder Kevin Zhou said that Galois Capital had half of its assets locked on FTX, with the Financial Times estimating the value to be close to $100 million.
Reuters' email and website inquiries for Galois to comment were not answered.
Genesis
According to a tweet from Genesis Trading on November 10, the US cryptocurrency broker's futures division has over $175 million (or nearly Rs. 1,400 crore) in locked funds on FTX.
Genesis stated in a tweet on November 9 that it "has no material exposure to FTT or any other tokens issued by controlled exchanges."
Kraken
On November 10, cryptocurrency exchange Kraken reported holding around 9,000 FTT tokens on the FTX market and not being impacted "in any major way."
On Sunday, Kraken said that it has blocked access to FTX, Alameda Research, and their leaders' accounts.
Corporate Finance Silvergate
As of September 30, Silvergate Capital Corporation said that FTX deposits totaled less than 10% of the $11.9 billion (approximately Rs. 97 crore) in deposits from all customers of digital assets.
The provider of financial solutions for digital assets added that FTX is not a custodian for Silvergate's leverage loans secured by bitcoin through the Silvergate Exchange Network (SEN), and that Silvergate has no outstanding loans or investments in FTX.
Explorer Digital
Following the lender's rejection of an earlier offer and description of it as a "low-ball bid dressed up as a white knight rescue," FTX won the assets of cryptocurrency lender Voyager Digital in a $1.42 billion (approximately Rs. 11,518 crore) bid during an auction in September.
When the troubled cryptocurrency exchange sought protection from creditors on November 11, Voyager said it had reopened the bidding process for the company and kept a balance of about $3 million (about Rs. 24 crore) at FTX.
