Who Still Has Exposure to FTX?
The crypto industry is in turmoil after insolvency issues drove major exchange FTX to accept a non-binding acquisition offer from rival Binance that might not go through. FTX suspended withdrawals on Tuesday, but some peers and major traders still have assets stuck on the exchange.
In response to the market volatility on Tuesday, crypto exchange Gemini tweeted that it "hedged and sold collateral resulting in a total loss of ~$7M across all counterparties, including Alameda.".
Gemini reiterated that it has no material exposure to FTX’s native FTT token and has no lending relationship with FTX. The exchanges have a trading relationship – "amongst other exchanges" – but the exposure "has no impact on our ability to serve our clients."
The market maker, which helps provide liquidity to crypto exchanges, reduced its exposure to FTX once the initial solvency concerns were raised.
Wintermute tweeted that it has remaining funds on FTX and noted that “while this is not ideal, the among is within our risk tolerances and does not have a significant impact on our overall financial position.”
Crypto-focused venture capital firm Multicoin Capital has around 10% of the total assets under management of its Master Fund stuck as pending withdrawals on FTX, according to a letter from the firm viewed by The Block.
Multicoin was able to move about 24% of its FTX-held assets before the withdrawal freeze went into effect on Tuesday. The stuck assets include bitcoin (BTC), ether (ETH) and USD.
The market maker has no exposure to FTX sister company Alameda or the FTT token, but the trading firm has been an active participant on the FTX exchange.
“While we have significantly reduced our exposure over the course of the week, we still have withdrawals that have yet to be processed,” wrote the firm, noting that the stuck assets represent less than 10 percent of Amber Group’s total trading capital and doesn’t “pose a threat to our business operations or liquidity.”This is a developing story and will be updated with additional information.
UPDATE (19:24 UTC): Update adds Amber Group section.