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FTX bankruptcy freezes millions worth of crypto company funds

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The collapse of crypto exchange FTX continues to have ripple effects across the crypto industry, with multiple crypto-focused companies reporting large amounts of capital remaining on FTX.

From November 11th to 14th, three cryptocurrency companies announced massive losses, and one of them had to lay off employees to deal with the crisis.

On November 11th, cryptocurrency hedge fund Galois Capital announced In the Financial Times on Nov. 12 report That said, $50 million worth of Galois assets may have remained on the exchange.

Other crypto-focused companies have reported that the now-bankrupt exchange is stuck with funds.

New Huo Technology, owner of Hong Kong-based crypto platform Hbit Limited announced On November 14th, I was unable to withdraw $18.1 million worth of cryptocurrency before FTX stopped processing withdrawals.

$13.2 million in this loss was digital assets owned by Hbit users, who said the company will continue to take steps to “withdraw cryptocurrencies as soon as possible.” [be] You can withdraw from FTX. ”

According to the announcement, the company’s controlling shareholder and founder of cryptocurrency exchange Huobi Li Lin has agreed to loan the company up to $14 million to be used to process withdrawals. However, the company does not yet know what the financial impact of FTX’s bankruptcy will be if it is unable to withdraw funds.

Nigerian Web3 startup Nestcoin, along with its CEO Yele Bademosi, also announced on Twitter that they had failed to withdraw funds from FTX, posting a letter they previously shared to investors on November 14. .

The letter details that Nestcoin laid off employees “because it held assets (cash and stablecoins) in FTX to manage its operating costs,” leaving it with no funds to pay some of its staff. I’m here.

Previously, crypto data aggregator platform CoinGecko warned on November 13th: Job cuts across the crypto sector could increase The next few months as the “full impact” of FTX’s sudden collapse takes effect.

Related: Will SBF face mismanagement of FTX? Don’t count on it

On November 11, FTX announced approximately 130 companies in the FTX Group, including its US corporation FTX.US and sister trading company Alameda Research. they declared to submit It went bankrupt in the United States after FTX suffered a liquidity crisis, unable to process user withdrawals and customers unable to access funds held on the exchange.

Bahamas-based subsidiary, FTX Digital Markets assets frozen by local securities regulators on November 10, Appointed liquidator To protect its funds while bankruptcy proceedings are underway.