What's Going To Happen To All The Companies FTX Bought? - Bitcoin (BTC/USD), Coinbase Global (NASDAQ:COIN)


FTX founder and former CEO Sam Bankman-Fried announced via Twitter Friday that FTX.US, FTX Trading, quantitative research firm Alameda Research and 130 additional affiliated companies to the FTX Group have commenced voluntary proceedings under Chapter 11 bankruptcy.

That begs a very simple question: what’s going to happen to all the companies FTX bought?

On a lending and acquisition spree over the course of 2022, Bankman-Fried spent nearly $2 billion to help struggling companies, acquiring insolvent firms to prop up the industry affected by extreme volatility following the collapse of Do Kwon’s Terra blockchain and the tanking of its native Luna token, which triggered the domino effect on the industry. The first domino was Three Arrows Capital with others shortly following and, now FTX.

Read Also: Coinbase Cuts More Staff As Bankman-Fried’s FTX Rattles Cryptocurrency Market

Here’s who FTX lent a hand to.

First, Voyager Digital VYGVQ received two credit lines, one for about $200 million and the other for about 15,000 Bitcoin BTC/USD on June 19 from Alameda Research.

Shortly after on July 5, Voyager Digital filed for chapter 11 bankruptcy. FTX.US — which also filed for bankruptcy — was subsequently chosen as the winning bidder to purchase Voyager’s assets in the amount of $1.42 billion on Sept. 27.

The effects of FTX’s bankruptcy on the Voyager acquisition are unclear, although other well-known businesses that participated in the auction in September included Coinbase Global Inc COIN and Binance.

Crypto lending platform BlockFi announced it had secured a $250 million revolving credit line from FTX on June 21, with Bankman-Fried saying he wanted the company to navigate the market from a position of strength. The deal came with an option for FTX to purchase BlockFi.

BlockFi announced Friday that it halted withdrawals on the platform, saying in a statement on Twitter that the company can no longer operate business as usual, citing “a lack of clarity” on the status of FTX and its subsidiaries.

The list of companies that have seen investments from FTX and Bankman-Fried include a 7.6% stake in Robinhood Markets Inc HOOD, Good Luck Games, Liquid and Bitvo.

Companies that have exposure to FTX or its subsidiaries include Genesis, Wintermute, Multicoin and more.

London-based crypto trading firm Wintermute announced Friday it halted trading on FTX and withdrew funds to minimize its exposure to the exchange, although some of its funds are still stuck on the platform.

Canadian-based crypto exchange Bitvo said on Thursday that customer funds are secure on its platform and trading operations, as well as withdrawals and deposits, are operating as normal.

Read Next: TRON Founder Justin Sun Prepared To Pump Billions In FTX


Image and article originally from www.benzinga.com. Read the original article here.