FTX Claims Another Victim — Once A Very Successful Hedge Fund

FTX Claims Another Victim — Once A Very Successful Hedge Fund
FTX Claims Another Victim — Once A Very Successful Hedge Fund

On Nov 14, crypto asset manager Ikigai revealed that most of its funds are held with FTX. The firm’s CIO, Travis Kling, went to withdraw funds from the hedge fund’s account on FTX but found that most of the assets had been depleted.

Kling clarified in his announcement that the hedge fund would also debate whether to keep its venture fund, which was not entailed in FTX’s game plan and raised $30 million from prior investors in May.

He noted that there is a lot of uncertainty about the timeline and potential recovery for FTX customers. But at some point, he said his team will “be able to make a better call on whether Ikigai is going to keep going or just move into winddown mode.”

The news sent shockwaves through the crypto community, with many wondering how such a well-funded and established company could have been so careless.

Crypto firms declare their assets

As with Ikigai, many crypto firms have declared how much in assets they had on FTX’s platform before it filed for bankruptcy last Friday.

The list includes Genesis Trading, CoinShares, Galaxy Digital, Wintermute, Crypto.com, Matrixport, and hedge fund Galois Capital. While not all have declared the figure, they will try to reclaim it through bankruptcy proceedings. The amount ranges from $4 million to $175 million.

On Monday, crypto lender BlockFi gave a public update. The company stated that while the rumors circulating claiming that most of BlockFi’s assets are in the custody of FTX were false, they have “significant exposure to FTX and associated corporate entities.”

This includes obligations Alameda owes them, assets held on FTX.com, and undrawn credit from their line with FTX.US.

To add to that, BlockFi is working with Berkeley Research Group, which helped advertise Voyager Digital’s assets during its bankruptcy process.

The situation at FTX is still unfolding, and it remains to be seen how much damage has been done.

What is clear, however, is that the Ikigai crisis is just the tip of the iceberg. It is likely that many more funds will come forward in the coming days to reveal their own exposure to FTX 

FTX bankruptcy revives QuadrigaCX memories

The news of Ikigai’s and BlockFi’s exposure to FTX comes as the crypto community is still reeling from the collapse of QuadrigaCX, which filed for bankruptcy in 2019 after the death of its founder Gerald Cotten.

QuadrigaCX’s users are still waiting to get their money back, and many have given up hope that they will ever see their funds again.

The news of FTX’s bankruptcy has brought back memories of the QuadrigaCX debacle, and many are worried that history may repeat itself.

If you have funds locked with FTX or another exchange, it’s important to stay updated on the latest developments and understand the risks involved. With the crypto markets still in their infancy, we can expect more exchanges to fail in the future.

Ikigai, FTX Claims Another Victim — Once A Very Successful Hedge Fund

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