FTX Fallout Wounded Warriors
November 12th-18th, 2022
When giants fall, the casualties are extensive and vast. Various entities have slowly been reporting their alleged FTX exposure.
We compiled it into the ultimate comprehensive list of all the casualties to date.
Unfortunately this list will inevitably need to be updated with fresh casualties in the coming weeks so follow along as we track everything you'll need to know.
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Done? Now let's dive in!
FTX Fallout Wounded Warriors
The Unscathed: those with relatively little to no damage
Tether CTO Paolo Ardoino says they had no exposure to FTX/Alameda
Circle CEO Jeremy Allaire says they don’t have any material exposure. Only ~ $10.6M
Coinbase CEO Brian Armstrong says they had no material exposure to FTX or FTT
Kraken had no exposure to Alameda Research - only holds ~ 9,000 FTT
Solana Labs, a US corp, didn’t have any assets on FTX
Solana Foundation had less than 1% of cash or cash equivalent FTX exposure - impact negligible
Nexo currently has net zero exposure to FTX and Alameda Research
El Salvador's president Nayib Bukele denies country had any funds on FTX
Electric Capital unaffected by FTX - only $125K stuck on exchange
CoinList had no material exposure to FTX, FTT, Alameda or any credit exposure to FTX
Celestia project treasury unaffected. FTX invested into Celestia’s most recent fundraising round
Crypto options exchange Deribit did not have any "large and risky" positions with FTX/Alameda
Grayscale products are operating "business as usual" and operations have not been impacted
Crypto lender Ledn has no exposure to Genesis and is fully operational
Paxos customer assets not impacted by FTX/Alameda
The Fortune Favored: those in a position to come out better than before
LayerZero structured an agreement and bought out FTX, FTX Ventures and Alameda Research from all equity positions, token warrants and all other agreements between the parties
Market maker B2C2 offered to purchase loans from Genesis
The Gravely Injured: those seriously impacted
Crypto lender BlockFi considering filing for Chapter 11 bankruptcy protection and job cuts
Lending arm of Genesis temporarily suspending redemptions and new loan originations
Solana DeFi TVL falls from ~ $55B to ~ $43B due to FTX fallout
Solana-based gaming metaverse Star Atlas saw its cash runway cut in half
Multicoin Capital lost more than half of its flagship fund’s capital in about two weeks
Galois Capital has $100M stuck on FTX. About 50% of total holdings
Crypto lending platform Salt halted withdrawals and deposits due to FTX collapse
DeFi prime brokerage service Oxygen had FTX act as custodian for over 95% of coin supply
Liquid Exchange, acquired by FTX, will stop withdrawals due to the Chapter 11 filing by FTX
Hedge fund Ikigai Asset Management had a "large majority" of its assets on FTX
Wrapped tokens on Solana no longer redeemable after FTX/Alameda bankruptcy
Bahamas-based subsidiary FTX Digital Markets filed for Chapter 15 bankruptcy protection
Solana NFT protocol maker Metaplex suffering from reputational damage spreading to Solana
Genesis Block, Asian BTC ATM network operator, to suspend trading after $50M exposure
The Casualties: those who got hurt but can keep on kicking
Between 25% and 40% of crypto hedge funds had some level of direct exposure to FTX or FTT
Paradigm marks down FTX investment to zero ~ $290M - only a small part of its total assets
Jump Crypto’s exposure to FTX was managed and remains well capitalized
Genesis Global Trading temporarily suspending redemptions and new loan originations
Genesis ~$175M stuck on FTX & received $140M equity infusion from parent company DCG
Pantera Capital had limited exposure to FTX - mainly as a shareholder through Blockfolio
Crypto trading firm Cumberland says it had virtually no exposure to FTX - less than $10M
Sequoia FTX investment now worthless ~ $213.5M in losses but fund is still in good shape
Multicoin Capital has 10% of fund's AUM stuck on FTX
Bank of America, Circle, JPMorgan Chase Bank, Wells Fargo, Silvergate Bank exposed
Multicoin Capital's third VC fund has exposure of more than $25M to FTX
Animoca Brands had 'limited' FTX exposure
Bankrupt crypto lender Celsius Network had $12M in outstanding loans to Alameda Research
Gemini Earn unable to meet customer redemptions due to Genesis unit pausing withdrawals
Singapore's Temasek International is writing off its $275M FTX investment
Galaxy Digital had $76.8M exposure to FTX
SoftBank Group Corp. is expecting a loss of $100M on its investment
Crypto.com CEO claims FTX exposure was limited to $10M
Celsius had 3.5M Serum tokens on FTX as well as $13M in loans to Alameda
Mechanism Capital assets stuck on FTX. Says amount is non-trivial and exploring legal options
Wintermute has funds stuck on FTX but within its risk tolerances
GSR will cover client losses from FTX collapse
Hodlnaut held assets worth $13.1M on FTX
Tom Brady, Gisele Bundchen, Steph Curry, Larry David class action lawsuit for FTX promo
Avalanche founder says they had very little exposure to FTX
Amber Group had no exposure to Alameda or FTT but 10% of capital on FTX
Stripe, Deloitte, Sullivan & Cromwell affected
Crypto trading shop Folkvang has some assets on FTX but is highly liquid and solvent
Crypto services provider Matrixport affected but faces no risks of insolvency
Crypto lender Voyager reopened the bidding process for its assets after the bankruptcy of FTX
Hbit Limited has $18.1M stuck on FTX. $14M loan from ex-Huobi CEO to cover client funds
Sino Global Capital had mid-seven figures in assets held in custody on FTX
Nigerian crypto startup Nestcoin’s operational funds stuck on FTX
Analytics firm Chainalysis is owed money in the FTX bankruptcy proceedings
Troubled Asian crypto lender Vauld has about $10M stuck on FTX
Circle Yield had Genesis as a counterparty with $2.6M in customer loans outstanding
Uruguayan payments unicorn DLocal has $5.6M on FTX - exposure to crypto is minimal
Nickel Digital Asset Management has ~ $12M stuck on FTX - about 6% of its $200M AUM
Ontario Teachers', one of Canada's largest pension funds, writing down its $95M FTX investment
Now, apart from the FTX fiasco, there has also been plenty of business as usual activity. Here’s a regular look at all the key highlights from the week:
Weekly TL;DR:
Top Bullets: Circle USDC adds support for Apple Pay, Cosmos community voted down ATOM 2.0 proposal, StarkNet Token deployed, LFG spent $2.8B defending UST peg, Tokensoft doxxed over 4000 users for sybilling airdrops, Chainlink Labs offers proof-of-reserve service, Ledger and Trezor huge spike in hardware wallet sales
Data Highlights: $830B total crypto market cap, DeFi TVL: $42.79B, Solana DeFi TVL down 66%, NFT sales - Ethereum: up 21.73% in sales, Solana: down 20.47% in sales, Polygon: up 91.82% in sales, Arbitrum: up 106.48% in sales, Smart Money Exchange Deposits: primarily sending ETH, PAXG, AAVE onto exchanges, Smart Money Exchange Withdrawals: taking stablecoins such as BUSD, USDC, USDT off of exchanges, Exchange Deposits: MKR, HFT, PROS, CRV in small amounts ranging from $10M to less than a mil, Exchange Withdrawals: Stablecoins and ETH were removed in the billions from exchanges
DeFi Highlights: Up to $3B of decline in USDC in circulation due to Binance BUSD autoconversion, Solana’s Serum forked, Solend liquidity mining rewards halted, Convex live on Arbitrum, Cardano stablecoin USDA coming early 2023, Umee launches Ojo Network for oracle services to Cosmos, Trust Wallet launches browser extension, Launch of MobyMask light client, Yearn x CoW Swap complex swaps, Yearn new bribe platform for Curve gauge voting
NFT/Metaverse/Gaming Highlights: Yuga Labs acquired Beeple’s NFT platform Wenew, Nike Web3 integration .SWOOSH, Sony PlayStation NFT patents, Cristiano Ronaldo partners with Binance to launch his first NFT collection, Yuga Labs to donate CryptoPunks NFTs to modern art museums, Binance to include OpenSea NFTs on Binance NFT Marketplace, 3LAU’s Royal debuts music NFT marketplace, SolChicks lost up to $20M of treasury funds during Luna crash, Chainlink launches NFT floor price feed service
Exchange Highlights: Crypto.com holds 20% of its reserves in the Shiba Inu, Crypto.com accidentally sent $400M in ETH to Gate exchange, Coinbase CEO sold more than $1.6M in shares, Bitget launches operations in Brazil
Economic/Government/Regulatory Highlights: EU considering a ban to prevent banks and crypto providers from dealing with privacy coins, El Salvador to purchase one Bitcoin every day, New York Fed and private banks developing a DLT-based digital dollar pilot, SEC delays decision on ARK 21Shares spot Bitcoin ETF, South Korean authorities raid Terraform Labs co-founder Daniel Shin’s company, Bitmex's former head of business development may receive 12 months of probation, Silvergate Bank found to have $425M in transfers to South American money launderers, Australian Securities Exchange shelved its 7 year blockchain project and writes off $170M, Wells Fargo and HSBC blockchain system for settling forex transactions to include the offshore yuan
Crypto Highlights of the Week
This Week’s Top Daily Bullets
Circle $USDC adds support for Apple Pay
The Cosmos community voted against the latest ATOM 2.0 proposal, which aims to revamp the ecosystem’s native ATOM token. Voter turnout for the proposal reached 73.41%
StarkNet Token deployed on Ethereum Mainnet. Tokens held by StarkWare shareholders, employees and independent partner software developers are locked for 4 years. Distribution mechanism not yet established
Luna Foundation Guard spent $2.8B defending UST peg
Tokensoft, a chain-agnostic token launch platform, has doxxed over 4000 of its users alleging that the named users were ‘gaming’ the Tokensoft DAO’s airdrop
Chainlink Labs offers proof-of-reserve service for embattled exchanges
Hardware wallet manufacturers Ledger and Trezor both reported a huge spike in sales as consumers rushed to self-custody solutions to safeguard their digital assets
What’s your take on this week’s news? Anything interesting that you have to say about these stories? Did we miss anything that should’ve been included?
Fundraising Highlights of the Week
Crypto Market Data Highlights of the Week
$830B total crypto market cap
DeFi TVL: $42.79B, Solana DeFi TVL down 66%,
NFT sales - Ethereum: up 21.73% in sales, Solana: down 20.47% in sales, Polygon: up 91.82% in sales, Arbitrum: up 106.48% in sales
Nansen Exchange Flows:
Taking a look at what is being deposited to and withdrawn from exchanges
Smart Money Exchange Deposits: Looks like smart money was primarily sending their ETH onto exchanges, followed by PAXG and AAVE.
Smart Money Exchange Withdrawals: As to what they were withdrawing, they were taking stablecoins such as BUSD, USDC, USDT off of exchanges
Exchange Deposits: How about all wallets in general? Looks like they weren’t sending very much onto exchanges. MKR, HFT, PROS, CRV. Ranging from $10M to less than a mil. Puny numbers.
Exchange Withdrawals: Now we’re talking some real numbers, in the billions. Stablecoins and ETH were removed en masse from exchanges - this again highlights the uncertainty users are feeling when it comes to exchanges. Nobody wants to be exposed and we’ve also seen multiple examples of increased self custody, hardware wallet sales and DeFi dApp usage.
DeFi Highlights of the Week
Circle estimate that up to $3.0B of the $8.3B decline in USDC in Circulation from June 30, 2022 to September 30, 2022 was driven by the auto conversion by Binance of USDC to BUSD
Solana developers are forking FTX-developed token liquidity hub Serum after it may have been compromised in a hack on FTX
Solend liquidity mining rewards have been turned off until further notice
Convex live on Arbitrum
Umee is launching a new chain, the Ojo Network - will focus on providing oracle services to the Cosmos interchain
Cardano developer Emurgo plans to issue a U.S. dollar-pegged stablecoin called USDA on the network in early 2023
Trust Wallet launches browser extension
MetaMask and Laconic launch MobyMask light client - a new initiative from the MetaMask team to help proactively protect users from phishing, uses a dynamic web of trust for sourcing phishing reporters
Yearn <> CoW Swap - allows complex swaps in CoW Swap like, 3CRV <-> yvSNX
Introducing yBribe. Yearn’s new bribe platform for Curve gauge voting
NFT/Metaverse/Gaming Highlights of the Week
Yuga Labs acquired Beeple’s NFT platform Wenew and its flagship NFT collection, 10KTF with Beeple joining Yuga Labs as an advisor
Nike is taking further steps towards Web3 integration with its release of .SWOOSH, a new platform geared towards building community around its digital wearables
Adidas unveils its first NFT wearable collection, Virtual Gear, which includes 8 silhouettes within 16 variations
PlayStation has been working on NFTs and blockchain technology, Sony patent reveals
Cristiano Ronaldo partners with Binance to launch his first NFT collection
Yuga Labs plans to donate CryptoPunks NFTs to modern art museums around the world
Binance to include OpenSea NFTs on Binance NFT Marketplace
3LAU’s Royal debuts marketplace to bring music NFTs to the masses. Used $16M seed funding to develop its browser-based NFT marketplace, where users can discover new artists, trade Royal NFTs, and see detailed statistics on each asset
SolChicks NFT project lost up to $20M of treasury funds due to the UST implosion in May 2022 and decided not to inform the community
Chainlink launches NFT floor price feed service on Ethereum, which will first support 10 NFT series, including Azuki, BAYC, CloneX, Cool Cats, etc - supported by Coinbase Cloud’s aggregation algorithm and Chainlink’s oracle infrastructure
Exchange Highlights of the Week
Crypto exchange Crypto.com holds 20% of its reserves in the Shiba Inu token
Crypto.com accidentally sent $400M in ETH to Gate exchange
Coinbase CEO Brian Armstrong sells more than $1.6M in shares
Bitget, a Singapore-based crypto derivatives exchange, has launched operations in Brazil
Economic/Government/Regulatory Highlights of the Week
The European Union is considering a ban that would prevent banks and crypto providers from dealing with privacy coins such as zcash, moner, dash and others
El Salvador’s president Nayib Bukele announced that the Central American nation will begin purchasing one Bitcoin every day
The New York Federal Reserve and a group of private banking firms are developing a DLT-based digital dollar pilot
U.S. SEC delays decision on ARK 21Shares spot Bitcoin ETF to Jan. 27
South Korean authorities raid Terraform Labs co-founder Daniel Shin’s company. Also summoned Shin as part of another investigation into the selling of pre-issuance Luna tokens
U.S. prosecutors have asked a court to sentence Greg Dwyer, Bitmex's former head of business development, to 12 months of probation for violating the U.S. Bank Secrecy Act
A South Korean court has approved a request by prosecutors to seize and pre-trially secure the assets of Terraform Labs co-founder Daniel Shin about $104M for allegedly selling pre-release Luna
Silvergate Bank, a provider of financial services to the digital currency industry, was recently subpoenaed and found to have $425M in transfers among its crypto bank accounts to South American money launderers
Australian Securities Exchange (ASX) shelved its seven-year-long project to ramp up the exchange’s CHESS clearing and settlement system using blockchain after an independent audit by Accenture reported issues - writes off $170M
Wells Fargo and HSBC expanded their blockchain-based system for settling foreign exchange transactions to include the offshore yuan
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