HomeAltcoinWill the bankruptcy of BlockFi and FTX cause other businesses to fail...

Will the bankruptcy of BlockFi and FTX cause other businesses to fail ?


The collapse of BlockFi raises more doubts about the resilience of the cryptocurrency ecosystem. Because of their interconnectedness, many businesses appear to be vulnerable to the FTX fiasco.

West Realm Shires Inc., doing business as FTX US, has an unsecured claim against BlockFi for $275 million, and the Securities and Exchange Commission (SEC) has an unsecured claim against BlockFi for $30 million.

However, some people are reassured that BlockFi was administered properly, in contrast to FTX, which was said to be lacking in the structures and expertise required to run such an institution.

Following its bankruptcy, BlockFi filed a lawsuit against Sam Bankman-Fried, a former FTX executive whom it holds responsible for the business’s problems. A $680 million loan was apparently not repaid by FTX and Alameda.

On November 28, BlockFi announced it was declaring bankruptcy, weeks after the cryptocurrency lender announced it was stopping customer withdrawals. BlockFi and FTX had a call option agreement that could have cost up to $240 million when it was signed in July.

Crypto Firms Exposed to FTX Bankruptcy.

The crypto lending arm of US digital asset broker 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.

Binance CEO 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.”

On November 11, insolvent cryptocurrency lender Celsius Network revealed that it has 3.5 million Serum (SRM) tokens listed on FTX and about $13 million in loans to FTX-affiliated trading company Alameda Research. According to Celsius, the loans were only partially collateralized with FTT tokens.

On November 8, Coinbase (NASDAQ:COIN) announced that it has $15 million in FTX deposits. She claimed she had no financial ties to FTX, Alameda Research, or FTT.

In a statement on November 10, cryptocurrency asset management CoinShares stated that it has $30.3 million in exposure to the cryptocurrency exchange FTX. According to CoinShares CEO Jean-Marie Mognetti, the company’s financial situation is still “strong”.

The $1 billion that Singapore-based cryptocurrency exchange Crypto.com stated it had sent to FTX over a year had mostly been recovered, and its exposure at the time of FTX’s bankruptcy was less than $10 million.

The day after FTX stopped withdrawals, on Nov. 9, cryptocurrency financial services company Galaxy Digital stated that it has $76.8 million in exposure to FTX, of which 47.5 million were “in the process of being withdrawn.”

Co-founder Kevin Zhou revealed to investors that hedge firm Galois Capital had half of its assets stuck on FTX, with a value of almost $100 million.

On November 10, cryptocurrency exchange Kraken reported holding about 9,000 FTT tokens on the FTX market and not being “seriously” impacted.

On November 11, Silvergate Capital reported that as of September 30, fewer than 10% of the $11.9 billion in deposits from all clients of digital assets were attributable to FTX. FTX is not a custodian for leveraged loans Silvergate Exchange Network (SEN) backed by Silvergate bitcoins, according to the supplier of financial solutions for digital assets, and Silvergate has no outstanding loans or investments in FTX.

With a balance of about $3 million at FTX, bankrupt cryptocurrency lender Voyager Digital was scheduled to sell its holdings to the exchange after accepting the exchange’s $1.42 billion offer in September.

Crypto asset manager Grayscale, whose flagship product Grayscale Bitcoin Trust (GBTC) is the world’s largest bitcoin fund, told investors that recent market events had no impact on operations of its products or security of assets in its funds.

Leave a Reply


According to a survey, one-third of singles in the Metaverse are ready to date.

According to data from a new Dating.com poll, the metaverse can help accelerate dating into the future, particularly as avatars become more reflective of individuals. Online...

Does it seem plausible that Ethereum and Cardano will have “catastrophic implosions like Terra Luna”?

Michael Saylor, the chairman of the Microstrategy board and owner of 130,000 Bitcoin on the balance sheet of his business, thinks Ethereum is just as...

BNB protection for Binance listing? CZ responds to claims about a delisted project

  While many were unconcerned about the delisting because to its inactivity, others questioned the emphasis on price for delisting, fearing that it would encourage projects...

Sam Bankman-Fried faces eight accusers and a possible sentence of more than 100 years in jail.

Sam Bankman-Fried, the fired CEO of the insolvent cryptocurrency platform FTX, is in even more difficulty now after this week's arrest in the Bahamas. In fact,...

Follow us


Most Popular

%d bloggers like this: