Matrixport's BTC Fixed Income Product Affected by FTX's Collapse
Crypto services provider Matrixport's fixed income offering tied to bitcoin has been affected by the recent collapse of cryptocurrency exchange FTX.
"The products of Matrixport that have been affected by the inability to withdraw from FTX are (1) the BTC Fixed Income Products (Including BTC Fixed Income Products and Smart Trend Products that use BTC Fixed Income Product as the underlying and (2) Victoria BTC Fund Products, with a total of 79 users having incurred losses as a result," Matrixport said in an email sent to clients early Friday.
The email added that the users invested in the firm's other products stand unaffected by the chaos.
FTX suspended both crypto and fiat withdrawals early this week after clients tried to take direct custody of their funds all at once.
Matrixport said its sales and operations team has reached out to each of the 79 affected clients, updating them on the current situation and proposed measures.
"79 clients incurred losses via exposure from 3 products on our platform and they have been informed accordingly. Matrixport continues to operate normally and the company has no risk of insolvency with respect to the developments at FTX and Alameda," Ross Gan, Head of Public Relations or a spokesperson at Matrixport, told CoinDesk.