Circle Reveals FTX Exposure With $10.6 Million In Equity Investments

Circle, the USDC issuer, revealed in a Securities Exchange Commission filing that it had stock stakes in the FTX Group worth around $10.6 million.

Circle claimed in a recent regulatory filing that its performance would be materially lower than the predictions it provided in February as a result of the failure of FTX and the automated conversions of USD Coin on Binance.

According to fresh regulatory filings, the company revealed that the tiny FTX equity that Circle CEO Jeremy Allaire had hinted at on Twitter the previous week is actually a $10.6 million investment the company made in the FTX Group.

Nearly 47.3 billion USDC were in circulation as of September 30, backed by around $47.5 billion in US dollars stored in custody accounts, according to Circle’s monthly attestation of its assets.

Circle informed its investors that it had ceased all business with the FTX Group as a result of its bankruptcy.

Additionally, the company mentioned in the filing that it has in the past provided the FTX Group with payment processing services, issued and redeemed USDC for them and that it intends to record an impairment related to them in the fourth quarter.

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