Coinbase Says No Exposure to FTT Token and Alameda, Minor Deposits at FTX

The publicly traded crypto exchange sought to reassure customers and investors during panicky conditions on Tuesday.

AccessTimeIconNov 8, 2022 at 9:03 p.m. UTC
Updated Nov 9, 2022 at 5:32 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Stephen Alpher is CoinDesk's co-regional news chief, Americas. He holds BTC and ETH above CoinDesk’s disclosure threshold of $1,000.

Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

"There can't be a 'run on the bank,' said Coinbase (COIN) in a statement, noting its publicly filed and audited reports show all customer assets as fully backed.

The company said it has minimal exposure to struggling crypto exchange FTX, with just $15 million on deposit there to facilitate business operations and customer trades. Coinbase further said it has no exposure to FTX's token FTT – which has plunged about 80% Tuesday – and no exposure to FTX sister company Alameda Research.

The exchange did have some technical issues Tuesday, acknowledging network connection problems for both web and mobile. It's unclear at this time if those outages have been fixed.

Meanwhile, another crypto exchange, Kraken, is also distanced itself from FTX. "Kraken has no material exposure to FTX or Alameda. We do not support FTT on either our spot or derivative platforms," Kraken's spokesperson, Edith Camargo, told CoinDesk.

Coinbase shares are down about 9% as bitcoin (BTC) plunged below $17,000, to a new 23-month low on Wednesday.

UPDATE (Nov. 9, 17:30 UTC): Adds comments from Kraken. Updates share price.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Stephen Alpher is CoinDesk's co-regional news chief, Americas. He holds BTC and ETH above CoinDesk’s disclosure threshold of $1,000.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


CoinDesk - Unknown

Stephen Alpher is CoinDesk's co-regional news chief, Americas. He holds BTC and ETH above CoinDesk’s disclosure threshold of $1,000.