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FalconX Discloses Assets Locked on FTX
The crypto trading firm says it can nonetheless take the pain.
By Danny Nelson
Updated May 9, 2023, 4:04 a.m. Published Dec 9, 2022, 4:58 p.m. 1 min read
Crypto trading firm FalconX said Thursday it has a portion of its assets locked on failed crypto exchange FTX.
"FalconX balances locked on FTX represented 18% of our unencumbered cash equivalents. This ratio was within our counterparty exposure limits," FalconX said in a blog post.
It said it will remain well-capitalized even if it has to write those assets off as a total loss. FalconX said it does not have exposure to Genesis, Alameda or BlockFi.
"Recent events have validated our approach to risk management. We are market risk neutral and extend credit overcollateralized on our platform. We utilize real-time risk monitoring, and we operate within the confines of our counterparty exposure limits," the blog post said.
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FalconX has hired Cantor and other bankers to advise on a potential IPO and confidentially filed draft paperwork with the SEC, though the listing is not expected until later this year amid volatile market conditions.
What to know:
- FalconX has confidentially filed a draft S-1 with the SEC and hired Cantor to advise on a potential IPO, according to a source.
- The crypto prime broker, last valued at $8 billion in 2022, serves institutional clients including hedge funds, asset managers and market makers.
- Cooling investor sentiment, weaker trading...
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