FalconX Discloses Assets Locked on FTX
FalconX, an institutional crypto trading platform, announced in a blog post that 18% of its “unencumbered cash equivalents” are still stuck on FTX.
However, the company said in case none of the money can be recovered, it has enough capital to continue its operations.
FalconX has been hesitant to say whether it had any assets locked on FTX or not, but it finally did.
According to Decrypt, two weeks ago, FalconX CEO Raghu Yarlagadda appeared on Bloomberg TV. When asked about whether the company had funds locked on FTX, he asked for the question to be repeated, and then explained that FTX’s restructuring process will be long and complicated.
When he was asked a third time, he said FalconX was “well operating within our risk tolerance,” which was the reason the firm “walked out of this with a small position relative to our balance sheet.”
In addition to that, in Friday’s blog post, FalconX restated what it has said before about having no exposure to Genesis, Alameda Research and BlockFi.
It is important to note that it’s been more than a month that the market has been suffering from the FTX crash. Earlier this week, the SEC published new guidelines urging companies to provide more details on their cryptocurrency holdings.
The guidelines, which include a sample letter on the regulator’s website, say that firms should disclose third-party crypto market participants, risks to the company’s liquidity, access to financing, and potential impact of any “legal proceedings, investigations, or regulatory” matters.