- The effects of FTX`s failure have now spread throughout the bitcoin industry and beyond.
- A list of exposed firms is now out and circulating.
- The effects of FTX will also be felt by the creditors of Voyager Digital.
The effects of FTX/Alameda’s failure have now rippled throughout and outside the cryptocurrency sector. This is after 134 business entities, including FTX, Alameda, and them, filed for Chapter 11 voluntary bankruptcy.
Liabilities for FTX and Alameda range from $10 billion to $50 billion, according to the bankruptcy petition.
On Thursday, a list of organizations having exposure to FTX and Alameda Research started to become viral on Twitter.
Some of those mentioned have now said they had no contact with FTX. KuCoin, a rival cryptocurrency exchange, whose CEO Johnny Lyu called the allegations “fake.” There are still people on the speculative list who have not confirmed or denied any exposure to FTX.
“Calling all researchers! Thread incoming but this is the contagion we know so far. Please provide info in the replies if you know of others so I can compile & share,” tweeted the author of the list.
A LOT more contagion WILL come out. Entities w/FTX & Alameda exposure will be short targets.”
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There are both mainstream and crypto-native projects on the list, which are varied. The latter is shown by the cross-chain protocol Stargate, which is currently under pressure. This is a result of Alameda Research purchasing all of its STG coins in March, as Sam Trabucco, the former CEO of Alameda, verified at the time through Twitter.
The effects of FTX will also be felt by the creditors of Voyager Digital, a defunct cryptocurrency lender that filed for bankruptcy in July. Customers of Voyager were given a lifeline by FTX. The FTX agreed to collect up to 72% of the account’s value under the plan.
But it is obvious that FTX won’t be able to honor its proposition for Voyager clients now that it has declared bankruptcy.
The companies and tokens that FTX and Alameda invest in are also on the verge of being liquidated. It is to be seen how the cryptocurrency market fair out in case a mass liquidation occurs.
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