Crypto trading firm FalconX said Thursday it has a portion of its assets locked on failed crypto exchange FTX.
"FalconX balances locked on FTX represented 18% of our unencumbered cash equivalents. This ratio was within our counterparty exposure limits," FalconX said in a blog post.
It said it will remain well-capitalized even if it has to write those assets off as a total loss. FalconX said it does not have exposure to Genesis, Alameda or BlockFi.
"Recent events have validated our approach to risk management. We are market risk neutral and extend credit overcollateralized on our platform. We utilize real-time risk monitoring, and we operate within the confines of our counterparty exposure limits," the blog post said.
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.
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.