Crypto industry participants distance themselves from FTX and Alameda Research.

Several major players in the crypto industry said they did not have close ties to the entities owned by Sam Bankman-Fried FTX and Alameda Research. According to representatives of several companies, the current crisis will not affect their operations.

On November 9, journalist Colin Wu urged Circle and Tether, which stand behind the stablecoins USDC and USDT, to disclose information about their financial relationships with the troubled firms.

Circle and Tether should disclose more of their financial relationship with FTX Alameda to let users know if it’s a risk. @jerallaire @paoloardoino We are seeing a lot of assets move from Circle to FTX; there are also reports that Alameda is the second largest issuer of Tether.

— Wu Blockchain (@WuBlockchain) November 9, 2022

In response, Circle cofounder and CEO Jeremy Allaire said the company “never made loans to FTX or Alameda, never received FTT as collateral, and never held or traded it.”

4/ Circle has never made loans to FTX or Alameda, and has never received FTT as collateral, and has never held a position in or traded FTT. In any case, the Circle does not trade on its own account.

— Jeremy Allaire (@jerallaire) November 9, 2022

He also assured that the current turbulence has not affected USDC. According to him, the stablecoin “boasts detailed transparency” and enjoys the trust of many leading asset managers and custodians around the world.

Bitfinex and Tether CTO Paolo Ardoino stressed that the issuer of USDT is not tied to the banks of Bankman-Fried. The crisis will not affect the business or the stablecoin due to the lack of close interaction, he added.

To be clear: #Tether does not have any exposure to FTX or Alameda. 0. Null.
Maybe is time to look elsewhere.
Sorry guys. Try again. https://t.co/1bRNUGrttr

— Paolo Ardoino 🍐 (@paoloardoino) November 9, 2022

«For clarity: Tether has no relation to FTX or Alameda. 0. Zero. Maybe it’s time to look elsewhere. Sorry, guys. Try again», — Ardoino wrote.

A similar statement was made by the OTC platform Cumberland. The cryptocurrency derivatives exchange Deribit, recently hacked for $28 million, also distanced itself from FTX and Alameda Research. Representatives of the platform added that the company and its structures do not hold assets such as FTT or Solana.

Genesis Trading stressed that it continues normal operations and has no access to tokens issued by centralized exchanges.

With regard to today’s market events, we have managed our lending book and have no material net credit exposure. In addition, Genesis has no exposure to any tokens issued by centralized exchanges. We continue to meet the needs of our clients around the world across all products.

— Genesis (@GenesisTrading) November 8, 2022

Crypto.com CEO Kris Marsalek called the FTX situation a “sad day for the industry.” In his words, the crisis’s impact on the platform is “immaterial.”

Our direct exposure to FTX meltdown is immaterial: less than $10m in our own capital deposited there for customers’ trade execution.

That’s very little compared to our global revenues surpassing US$1 billion for two consecutive years.

— Kris | Crypto.com (@kris) November 9, 2022

«Мы всегда поддерживали соотношение резервов 1:1 и считаем, что это является основным принципом работы. Мы будем добиваться большей прозрачности и регулирования отрасли, чтобы гарантировать, что это стандарт, по которому работают все криптоплатформы», — написал Маршалек.

Temasek, the Singaporean government-linked investor that participated in investments in FTX, said in Reuters that it is watching the situation.

BlockFi founder Flori Marquez said that all of the company’s products are “fully functional,” and the business does not depend on Bankman-Fried’s exchange.

2) @BlockFi is an independent business entity. We have a $400MM line of credit from https://t.co/rFQz2hySwu (not https://t.co/oVC3gZQ6lb) and will remain an independent entity until at least July 2023.

— Flori Marquez (@FounderFlori) November 8, 2022

«BlockFi является независимым хозяйствующим субъектом. У нас есть кредитная линия на $400 млн от FTX US (не FTX.com), и мы останемся независимым юридическим лицом как минимум до июля 2023 года», — подчеркнула Маркес.

Meanwhile, Galaxy Digital’s Mike Novogratz disclosed risks of $76.8 million related to FTX. According to the third-quarter report, $47.5 million of the total is “in the process of withdrawal.” read more.

Earlier, Coinbase CEO Brian Armstrong ruled out the FTX crisis’s impact on the exchange and expressed sympathy for all involved.

Earlier, on November 6, Binance CEO Changpeng Zhao said the company aimed to divest from FTT. Assets together with BUSD totaling around $2.1 billion marked the firm’s exit from its portfolio investment in FTX.

Against the backdrop of reports of a feud between the two platforms, and concerns about FTX’s financial stability, the FTX utility token fell about 30%.

On November 8, Bankman-Fried and Zhao announced a strategic partnership intended to resolve the liquidity crisis and potentially lead to Binance’s acquisition of FTX.

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