From Temasek to Genesis, here's the direct impact of FTX failure on other corporates

finance.yahoo.com

Over the first two weeks of November, crypto exchange FTX went from leading crypto exchange to a $16 billion bankruptcy - this year's largest so far.

Insiders, customers, the press, and regulators are still piecing together what caused the largest corporate failure in crypto's 14-year history and what such a fallout means as it ripples across the digital assets market.

So far the fallout has meant the loss, freeze, or write down of at least $1.8 billion in funds comprising mostly equity investors from past funding rounds and firms who held money with FTX. It also accounts for the hundreds of millions of dollars in credit, loans, and acquisition financing between FTX, its U.S. subsidiary, Alameda Research, and outside parties.

Here's the damage so far.

Equity Investors

Equity investors stand to lose the most capital from FTX in bankruptcy, but they are also by far the largest investors, a complete write-down of their investment is little more than a scratch to their bottom lines. In a Thursday statement, Temasek disclosed that its $275 million investment in FTX and related businesses, which is the second largest yet reported, accounted for just 0.09% of its $403 billion net portfolio value.

On the other hand, the fallout is worse for smaller crypto-specific equity investors like Paradigm and Multicoin Capital, which also maintained a portion of their funds with the platform.

Firms with funds stuck on FTX

Over the past week dozens of crypto firms have announced they still have funds stuck on FTX's platform Ranging from a couple million to Genesis Trading's $175 million, these companies are now unsecured creditors in FTX's Chapter-11.

It's unclear what the ramifications will be for most of these players. One way to think of it according to Noelle Acheson, author of a crypto and macroeconomics newsletter, is "a domino effect."

"They are going to have clients whose funds are going to be stuck who will also have clients who are going to be stuck and so on," Acheson told Yahoo Finance.

These firms should also be expected to play a larger role during, sometimes in opposition, the fight for how FTX's remaining assets should be divvied.

Indirect Ripple effects

Since FTX first stopped processing customer withdrawals, crypto lender BlockFi has also frozen customer accounts due to its $250 million credit line, Crypto.com has also faced higher customer withdrawals and scrutiny while Genesis, the industry's largest crypto lender, has paused customer withdrawals.

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David Hollerith

信報財經新聞

申請破產保護的加密貨幣交易平台FTX表示，公司欠款最多的50名債權人，合共涉及金額31億美元(241.8億港元)。

根據該公司向法院提交的文件，欠下10大債權人的金額為14.5億美元。文件沒提及他們的名稱。

FTX在11月11日向美國特拉華法院申請破產保護，估計其債權人達100萬名以上。