{"id":70085,"date":"2022-11-15T13:14:27","date_gmt":"2022-11-15T11:14:27","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=70085"},"modified":"2025-09-08T00:01:34","modified_gmt":"2025-09-07T21:01:34","slug":"experts-estimate-the-scale-of-crypto-funds-losses-after-the-ftx-collapse","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/experts-estimate-the-scale-of-crypto-funds-losses-after-the-ftx-collapse\/","title":{"rendered":"Experts estimate the scale of crypto funds&#8217; losses after the FTX collapse"},"content":{"rendered":"<p>Crypto funds&#8217; losses from FTX&#8217;s bankruptcy could reach up to $5 billion, according to Blockworks, citing Crypto Fund Research.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"zxx\" dir=\"ltr\"><a href=\"https:\/\/t.co\/4kx3gRpPmN\">https:\/\/t.co\/4kx3gRpPmN<\/a><\/p>\n<p>\u2014 Crypto Fund Research (@CryptoFResearch) <a href=\"https:\/\/twitter.com\/CryptoFResearch\/status\/1592332111650123777?ref_src=twsrc%5Etfw\">November 15, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to experts, the crisis affected 25-40% of sector investment vehicles that had invested in FTX or its utility token FTT.<\/p>\n<p>Crypto Fund Research CEO Josh Gnaizda clarified that this refers to 7-12% of assets under management.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cAs clarity emerges, losses for hedge funds and venture firms directly tied to the FTX collapse are expected to exceed $1 billion at best, and could reach as much as $5 billion,\u201d he said.<\/p>\n<\/blockquote>\n<p>Industry insiders, speaking on condition of anonymity, told the publication that losses among asset managers could be even larger.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe number of completely [destroyed] funds by this [bankruptcy] is only beginning to surface,\u201d one source noted.<\/p>\n<\/blockquote>\n<p>Crypto Fund Research receives monthly reports on the activities of more than 100 industry investment structures.<\/p>\n<p>Paradigm and <a href=\"https:\/\/u1f987.com\/en\/news\/sequoia-capital-records-213-5-million-loss-on-ftx-investments\">Sequoia Capital<\/a> reported that potential losses from the FTX crisis could amount to $278 million and $213 million, respectively. <\/p>\n<p>Genesis Trading said that the derivatives unit had about $175 million blocked in its account on the platform.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">As part of our goal in providing transparency around this week\u2019s market events, the Genesis derivatives business currently has ~$175M in locked funds in our FTX trading account. This does not impact our market-making activities.<\/p>\n<p>\u2014 Genesis (@GenesisTrading) <a href=\"https:\/\/twitter.com\/GenesisTrading\/status\/1590836594382032896?ref_src=twsrc%5Etfw\">November 10, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As of November 8, Galaxy Digital, Mike Novogratz&#8217;s firm, had FTX-related positions in cash and digital assets amounting to $76.8 million. Of these, $47.5 million were in the process of being withdrawn, <a href=\"https:\/\/s201.q4cdn.com\/407453138\/files\/doc_financials\/2022\/q3\/Galaxy-Digital-Holdings-LP-Press-Release-9_30_2022-vF.pdf\">the firm said<\/a> in its third-quarter results.<\/p>\n<p>Multicoin Capital told <a href=\"https:\/\/www.theblock.co\/post\/186631\/multicoin-capitals-third-vc-fund-has-exposure-of-more-than-25-million-to-ftx\">The Block<\/a> that it had invested $25 million in FTX US and held $2 million in USDC on the exchange.<\/p>\n<p>The venture firm invested in FTX US through a <a href=\"https:\/\/u1f987.com\/en\/news\/multicoin-capital-announces-430-million-venture-crypto-fund\">created in July<\/a> Venture Fund III for $430 million. Investments in the failed platform amount to 5.8% of the fund&#8217;s assets, according to Multicoin.<\/p>\n<p>Crypto Fund Research estimated Pantera Capital&#8217;s FTX-related assets at about $100 million. The firm did not confirm the data but previously stated that the exchange&#8217;s collapse <a href=\"https:\/\/u1f987.com\/en\/news\/pantera-capital-says-ftx-crash-had-only-a-minor-impact-on-its-business\">insignificantly<\/a> affected Pantera&#8217;s business.<\/p>\n<p>Researchers expect a record number of investor requests to retrieve funds from crypto funds in November \u2014 up to $2 billion. The previous high \u2014 $1.3 billion \u2014 was recorded by Crypto Fund Research in June after the Terra collapse.<\/p>\n<p>Bloomberg <a href=\"https:\/\/u1f987.com\/en\/news\/bloomberg-says-customer-recovery-of-ftx-funds-unlikely\">were skeptical about<\/a> the possibility of investors and clients of FTX recovering their losses.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news in our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 crypto news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto funds&#8217; losses from FTX&#8217;s bankruptcy could reach up to $5 billion, according to Blockworks, citing Crypto Fund Research.<\/p>\n","protected":false},"author":1,"featured_media":70086,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1236,1156],"class_list":["post-70085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ftx","tag-institutional-investors-and-whales"],"aioseo_notices":[],"amp_enabled":true,"views":"36","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=70085"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70085\/revisions"}],"predecessor-version":[{"id":70087,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70085\/revisions\/70087"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/70086"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=70085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=70085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=70085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}