Read full article at The Capital.
A summary of companies affected by FTX:
Binance
FTX rival and leading cryptocurrency exchange Binance revealed that they previously held $580 million of FTT, FTX’s native token. Changpeng CEO “CZ” Zhao said on November 14
that Binance had sold a “small portion” of the position and had terminated the sale, meaning Binance still has potentially significant exposure to FTX. Binance became a major player in the collapse of the FTX exchange by making a statement that they would sell some FTX
and then making sentiment about acquiring FTX but this was cancelled.
BlockFi
Lending&Borrow Cryptocurrency BlockFi is on the way to bankruptcy as a result of the FTX impact. FTX bailed out BlockFi in July 2022, giving BlockFi a $400 million revolving credit facility and options to buy lenders for up to $240 million. BlockFi halted withdrawals from its platform due to uncertainty about FTX earlier in the month.
Genesis Trading
Genesis Trading said on November 10 that it has about $175 million of funds locked up in FTX. Still, Genesis had no material exposure to FTT. Genesis is delaying certain withdrawals through its platform in response to the FTX crisis.
Galois Capital
Hedge fund Galois Capital is a non-crypto company with significant FTX exposure. Co-founder Kevin Zhou announced in early November that the fund has about half of its capital “stuck” in FTX, totaling around $100 million. Zhou estimates it will take “several years” to recover an unspecified percentage of the assets.
Digital Galaxy
Galaxy Digital is a cryptocurrency financial services company with nearly $77 million in FTX exposure as of early November. More than $47 million of the fund is in the “drawing process,” though it’s unclear where they were as of mid-November.
VoyagerDigital
The future of Voyager Digital is heavily impacted by what happens to FTX for many reasons. The crypto lender that went bankrupt had about $3 million in balance on FTX when the latter filed for bankruptcy. FTX successfully bid $1.4 billion for Voyager assets in September this year. With the collapse of FTX, Voyager is left to find another bidder. Voyager’s lawyers said that FTX breached its contract to buy Voyager out of bankruptcy.
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FTX Affected Companies was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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