Genesis Trading Reveals It Has $175M Locked on FTX (FTT)

Genesis Trading Reveals It Has $175M Locked on FTX (FTT)

Digital Currency Group’s market maker and lending subsidiary, Genesis Trading, has announced on Twitter that it has $175 million locked on the now-bankrupt crypto exchange FTX (FTT).

The derivatives firm said that this “does not impact our market-making activities” and that it has no “ongoing lending relationship with FTX or Alameda.”

It added that “operating capital and net positions in FTX are not material to our business” and that it “printed record volumes, maintained leading market share, and supported clients with their ongoing derivatives needs” in the past two days.

However, just two days ago Genesis Trading said that it had lost $7 million “across all counterparties, including Alameda” when it hedged and sold collateral.

Genesis Trading is only one of the multiple companies affected by the blowup of FTX. Sequoia Capital, one of the largest crypto venture capital funds, marked down its investment of $213.5 million in FTX to $0 after it was revealed that the exchange had a $10 billion balance sheet hole.

Genesis Trading’s statement came hours before FTX announced it filed for Chapter 11 bankruptcy. The bankruptcy involves FTX Group companies, including, Alameda Research, FTX US, and another 130 closely tied firms.

FTX’s native token FTT reacted to the news by falling more than 64% in a matter of minutes. It has since somewhat rebounded and is now trading at $2.28, according to data from TradingView.

The downfall of FTX has negatively affected the whole crypto industry. It’s likely that in the coming weeks and months more companies will announce that they have been hit hard by the FTX debacle.

Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.

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