Several crypto companies and businesses are starting to feel the extent of the damage from FTX’s collapse, as some of them have funds tied up in the exchange.
While some of the affected companies have begun disclosing their exposure, the extent of the damage could be far greater than imagined, given the amount of smoke that has billowed over the past two days.
Crypto Firms Feel the Pinch
Venture capital firm Sequoia Capital announced the loss of its $213.5 million investment in the stock market. In a letter sent to its partners, it indicated that it was reducing its investment to zero.
Since the incident, at least one BlockFi crypto lender has suspended withdrawal. Although the company has not disclosed the extent of its exposure, its decision has given rise to speculation that it may be insolvent.
Several celebrities like Tom Brady, Steph Curry and Naomi Osaka would also record losses. All were named global ambassadors for the company last year.
Previously, crypto credit companies that suspended withdrawals, such as Celsius and Voyager, following the Terra LUNA crash filed for bankruptcy due to the extent of their exposure.
Start Atlas reveals it lost half of its money
The studio behind the Solana-based Star Atlas gaming metaverse has revealed that it lost half of its cash trail to the collapse of FTX.
ATTMA CEO Michael Wagner said the game developer had “cash material exposure” in FTX with its deposit. However, he said his track record is still strong enough to see him through.
Wagner did not reveal how much was blocked in FTX.
Galois Capital loses 50%
Another crypto firm exposed to the failing exchange was crypto fund Galois Capital.
Reports have surfaced that Galois co-founder Kevin Zhou said the fund has around $40 million locked up in FTX.
The fund also confirmed this on Twitter, adding that he “did not use any Bahamian method to withdraw funds”.
Ren Protocol Funding Blocked
Ren protocol too disclosed that he had received quarterly funding from Alameda for the past 12 months. But he also said he will continue to operate and look for ways to continue Ren 2.0’s plans.
Meanwhile, the full extent of the losses remains unknown. Blockchain projects like Solana, Aptos, and Sui all have direct ties to the failing exchange.
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