The demise of FTX is rapidly draining funds from the crypto economy: market makers and funds that lost money on the exchange. Which was previously one of the largest cryptocurrency exchanges in the world, are more numerous than previously anticipated.
In an invite-only Telegram chat, received responses from dozens of market makers and fund managers. The outcomes of the “FTX creditors private” chat, which had 147 participants.
Sixty-six percent of the 70 respondents said they lost less than $25 million, and seven percent said they lost between $25 million and $50 million to $100 million, while 1% reported losses ranging from $100 million to $500 million. The remaining 20% refused to provide a rough estimate of their potential losses.
A reference with an understanding of the incident said, “If someone who was a major player was on FTX. “Without that platform, you couldn’t run a respectable market-making business.”
A few members of the chat have spoken publicly, but the majority of the firms in the group have not made their losses public, according to the source. There will be many infectious diseases because many funds haven’t reported the losses they’ve incurred.
If the FTX collapse is similar to what happened with the crypto exchange Mt. Gox, it will result in a lengthy court case in which depositors attempt to recoup their losses. However, some members of the chat are looking into selling claims on their FTX accounts. According to messages seen by Realclobber, people in the chat asked each other if they’d been able to sell their accounts over the counter.
According to group members, Enigma Securities is looking to buy claims on an individual or corporate accounts. Enigma is a Financial Conduct Authority-registered cryptocurrency asset facilitator that provides liquidity, banking relationships, and custody solutions.