By George Ward
The FTX crisis leaves many of its investors bankrupt as the pressure of losing funds invested into the platform rises by the day. In addition, trust has been trampled upon, and much damage has been incurred by crypto companies and external bodies whose funds are stuck in the platform.
Records show that not less than 50 companies have so far been affected by the FTX collapse. A recent disclosure shows the extent of damage incurred by most companies, considering the funds that fizzled out during the crisis.
Big Crypto Companies Lose Big As Well
Sequoia Capital, a venture capital firm, has announced its share of losses incurred in the FTX crisis amounting to about $214 million. In addition, the company revealed its intention to write off investments to zero.
BlockFi, a crypto lending platform, is yet to disclose the extent of losses incurred since the FTX incident. The reasons for not disclosing its exposure are yet unknown. But their lack of disclosure has birthed speculations that might be implosive.
FTX ambassadors aren’t left out of the insolvency as celebrities, notably Steph Curry, Naomi Osaka, and Tom Brady, are also believed to have records of losses. Recall that the exchange platform appointed the trio as ambassadors.
While the incident left many companies debilitated, crypto lending platforms like Voyager and Celsius, with similar cases of withheld withdrawals, resorted to filing for bankruptcy following the Terra Luna crash. Thus, indicating their exposure level to the Terra network crash.
Funds Recovery Seems Impossible
In a recent tweet by Star Atlas, the studio anchoring Solana’s gaming metaverse, the company disclosed it had lost a generous portion of its assets to the FTX crisis.
Following the tweet, Michael Wagner, ATMTA CEO, responded that the metaverse game developer experienced a material disclosure with its deposit on FTX. However, he added that its earnings report remains at profitable levels.
The Galois Capital is another crypto company with records of exposure to the collapsed crypto exchange. Mario Nawfal revealed that half of the firm’s capital of about $40 million is stuck in the platform.
The co-founder confirmed this in his recent tweet, adding that he didn’t opt for the bounty offer to move out funds. Furthermore, Ren protocol joined the list of firms affected by the FTX crisis, but the extent of losses incurred is yet unknown.
The protocol added that the incident wouldn’t halt any of its operations, disclosing that they receive funds quarterly from Alameda. Notably, the collapsed exchange directly affects most blockchain projects like Sui, Solana, and Aptos.