FTX’s bankruptcy still continues to create some chaos in the crypto market. Meanwhile, several companies have a significant amount of capital frozen on the FTX exchange.
Several parties still have funds on FTX
For example, the crypto hedge fund called ‘Galois Capital’ has indicated that it has a significant amount of funds on FTX. This reportedly equates to approximately $50 million tied up on the crypto exchange.
New Huo Technology, owner of the crypto platform called Hbit Limited, announced on November 14 that it had failed to withdraw $18.1 million worth of cryptocurrency before FTX stopped processing withdrawals.
In addition, several other crypto-focused companies have also announced that their funds are tied to the now-bankrupt crypto exchange. It is impossible to withdraw the funds from the platform at this time.
Nestcoin, a Web3 startup from Nigeria, also disclosed that they had failed to withdraw funds from FTX. About this she sent a message to their investors.
The letter states that Nestcoin will lay off employees as they kept their assets with FTX to manage our operational costs and it no longer has the means to pay some staff.
Effects of FTX are frozen
In addition, Huobi also helped financially with the processing of withdrawals. This is what Li Lin, Huobi’s controlling shareholder, says. However, the company does not yet know what the financial impact of FTX’s bankruptcy will be if it is never able to withdraw the funds.
Within the FTX Group, there are approximately 130 companies, including the American entity FTX.US and sister trading firm Alameda Research. They have since announced that they too would file for bankruptcy in the US after FTX went through a liquidity crunch and was unable to process user withdrawals.
The assets of the Bahamas-based subsidiary, FTX Digital Markets, were frozen by the local securities regulator on Nov. 10 and liquidators were appointed to safeguard the funds while bankruptcy proceedings are underway.