Who was affected by the FTX collapse?

While the FTX debacle may have had a severe impact on the broader crypto market, some companies have borne the brunt and been hit directly by the storm from the embattled crypto exchange.

Below are some of the affected companies tracked through November 17, 2022.

Genesis

Institutional trading firm Genesis announced on Nov. 11 that it has $175 million in locked funds in its FTX trading account. However, the company noted that this had no impact on its market-making activities. Furthermore, the trading company clarified that the risk is not material to the business and will not affect its operations.

While the company maintains trading relationships with cryptocurrency exchanges, the company also clarified that it does not have an ongoing lending relationship with FTX or Alameda Research.

Galaxy Digital

Blockchain financial services company Galaxy Digital recently disclosed a $76.8 million investment in FTX. Of that amount, the company highlighted that it had withdrawn $47.5 million. Despite the pledge, the company stated it still has $1.5 billion in liquidity. That includes $1 billion in cash and $235.8 million worth of stablecoins to cover its losses.

Sequoia Capital

Venture capital firm Sequoia Capital announced in a letter to its limited partners that its $213.5 million investment in FTX and FTX US companies is now worth $0. The firm acknowledged that the collapse of FTX created a solvency risk. Still, the venture capital firm claims its exposure is limited, offset by its profits. In a letter, the company wrote:

“The $150M loss is offset by ~$7.5B in realized and unrealized gains in the same fund, so the fund remains in good shape.”

The firm also stresses that they are in a "risk-taking business," suggesting that some investments have their advantages while others have their disadvantages.

Galois Capital

Hedge fund Galois Capital admits some of its funds are stuck in FTX. In a letter to investors seen by the Financial Times, it is reported that half of the company’s capital is still tied up with FTX. That amount is estimated to be around $100 million, based on the company's assets under management as of June.

BlockFi

As the FTX debacle hit the market, crypto lending firm BlockFi also admitted to having "substantial exposure to FTX and related companies." However, the company denied rumors that most of its assets are held on the FTX exchange. In an update, the company wrote:

"While we will continue to work on recovering all obligations owed to BlockFi, we expect that the recovery of the obligations owed to us by FTX will be delayed as FTX works through the bankruptcy process."

On Nov. 11, the company restricted activity on its platform and halted customer withdrawals. The firm also advises customers not to make deposits to their BlockFi wallets or interest accounts.

Crypto.com

Crypto.com Exchange CEO Kris Marszalek recently assured clients that the exchange’s $1 billion worth of assets transferred to FTX has been fully restored. The CEO stressed that her commitment to the company was just under $10 million. Marszalek also told users that the exchange would not stop withdrawals, dismissing allegations that their native tokens were used as collateral for loans.

Wintermute

Cryptocurrency market maker Wintermute, a firm that made headlines after losing $160 million in a hack, also admitted it still has some funds left over on the FTX exchange. They tweeted:

While the firm did not reveal how much it held in FTX, the firm assured its followers that the amount was within its risk tolerance and would not have a material impact on its financial position.

Multicoin Capital 

Venture capital firm Multicoin Capital has reportedly frozen approximately $863 million in assets on the FTX exchange. In a letter reported by The Block, the firm highlighted 10% of assets under management in its main fund, which is stranded on the exchange. 

CoinShares

Digital asset trading group Coinshares also announced limited exposure to the FTX exchange in an announcement posted on Twitter. The company noted that it was able to reduce its total exposure to $31.5 million, assuring the community that the company’s financial position remains strong.

Exposure includes approximately $3.1 million in Bitcoin, $1 million in Ether, $25.9 million in USD and USDC, and other assets worth $110,000.

Amber Group

Financial services firm Amber Group announced that it has been an active trading participant on the FTX exchange, with withdrawals yet to be processed. Nonetheless, the company said in an announcement that exposure was limited to less than 10% of its total trading interest. The company assured the community that the payment will not affect its liquidity or operations. 

Pantera Capital 

In a blog post, investment firm Pantera Capital noted that it suffered some risks and losses from the FTX debacle. This comes from the company’s Blockfolio acquisition related to FTX tokens and FTX shares. According to the announcement, the company liquidated as many FTT as possible on November 8.

Nexo

While cryptocurrency lender Nexo acknowledged providing a small loan to Alameda Research, the company emphasized that the amount was less than 0.5% of its total assets. According to a statement, the loan was fully collateralized by digital assets and was sold. The company also avoided a potential loss of $219 million by withdrawing its entire balance from the FTX exchange.

In addition to the aforementioned companies, companies like Nestcoin have laid off some employees because they were unable to withdraw assets to FTX. Meanwhile, decentralized finance firm Liquid Meta announced that it also holds around $7.5 million in FTX. In addition, Voyager Digital, which FTX intends to acquire, also announced the resumption of the bidding process. FTX's bankruptcy filing also estimates it has more than 1 million creditors.