FalconX says exposure to FTX represented 18% of its 'unencumbered cash equivalents'

Cryptocurrency trading institution FalconX has disclosed that it suffered losses successful the illness of FTX. 

According to the company, its assets locked connected FTX correspond lone 18% of its “unencumbered currency equivalents.” However, the institution added that this ratio fell good wrong their counterparty vulnerability limits. 

FalconX insisted that contempt its vulnerability to the present insolvent FTX, its finances stay beardown arsenic it continues to facilitate “billions of dollars” successful regular commercialized measurement for its clients. The institution besides claims its monthly measurement has grown by “80%+ month-over-month.”

The crypto trading steadfast claims that “in a 0% betterment script of FTX balances, FalconX remains 1 of the best-capitalized firms successful integer assets” adding that, it was “highly liquid” with a 4% debt-to-equity ratio, and with implicit 80% of its equilibrium expanse successful regulated U.S. banks.

Despite suffering losses successful the FTX collapse, FalconX maintained it had nary vulnerability to Genesis, Alameda Research, oregon BlockFi.

Related: CZ and SBF duke it retired connected Twitter implicit failed FTX/Binance deal

Since the abrupt closure of FTX, immoderate cryptocurrency companies person downplayed their vulnerability to the failed derivatives exchange; others person been caught lying to their investors and clients astir the interaction the illness had connected them. 

BlockFi, which initially denied having a bulk of its assets custodied connected FTX, filed for Chapter 11 bankruptcy on Nov. 28. 

On Dec. 5, blockchain-based organization superior marketplace Maple Finance chopped each ties with Orthogonal Trading due to its alleged misrepresentation of finances pursuing the illness of FTX. According to Maple Finance, Orthogonal Trading had been “operating portion efficaciously insolvent”.