Many crypto companies and firms are starting to feel the extent of the damages of the collapse of FTX, as some of them have their funds stuck in the exchange.
Although some affected companies have begun to disclose their exposures, the amount of damage could be much higher than imagined, given the amount of smoke in the past few days.
Crypto companies feel the pinch
Venture capital firm Sequoia Capital has announced the loss of its $213.5 million investment in the exchange. In a letter sent to its partners, it said it was marking its investments at zero.
Since the incident, at least one crypto lender BlockFi has halted withdrawals. Although the firm did not disclose the extent of its exposure, its decision gave rise to speculation that it may be insolvent.
Many celebrities like Tom Brady, Steph Curry and Naomi Osaka will also be recording losses. All were appointed as global ambassadors of the firm last year.
Previously, following the Terra LUNA crash, crypto lending firms, such as Celsius and Voyager, filed for bankruptcy due to the extent of their risk that had halted withdrawals.
Start Atlas reveals he’s lost half his cash
The studio behind Solana-based gaming metaverse star Atlas revealed that it lost half of its cash runway to the fall of FTX.
ATMTA CEO Michael Wagner said the game developer had “material cash exposure” to FTX with his deposits. However, he added that its balance sheet is still strong enough to see this through.
Wagner did not say how much was stuck in FTX.
Galois Capital Loss 50%
Another crypto firm that came into contact with the bankrupt exchange was crypto fund Galois Capital.
Reportedly, Galois co-founder Kevin Zhou said that about $40 million in the fund is locked in FTX.
fund also Confirmed It took to Twitter, saying that it “did not use any Bahamian method to extort funds.”
Rain Protocol funding hang
rain protocol too exposure That it had received quarterly funding from Alameda for the past 12 months. But it also said it would continue to operate and look for ways to continue with its plans for Rain 2.0.
Meanwhile, the full extent of the damage remains unknown. Blockchain projects such as Solana, Aptos and Sui have direct links to the failed exchange.
Disclaimer
All information contained on our website is published in good faith and for general information purposes only. Any action taken by readers on information found on our website is strictly at their own risk.