FalconX Claims Financially Stable Despite FTX Exposure

FalconX reassures users during the crisis following the collapse of FTX. The company claims only 18% of its cash is stuck on FTX so it has absolutely no impact on the company’s finances.

According to The Block, digital asset platform FalconX stated in an email to customers that despite exposure to FTX, the company’s financial position is still good.

The company claims their balance on FTX represents 18% of the company’s equivalent, which is within the counterparty’s risk limit. Even without recovering any assets from FTX, FalconX said it remains “one of the best-capitalized digital asset companies.”

“FalconX balances locked on FTX represented 18% of our unencumbered cash equivalents,(…). This ratio was within our counterparty exposure limits.”

80% of its assets come from regulated US banks. FalconX says it has no affiliation with Alameda Research, Genesis and BlockFi. In addition, the company also says that its trading volume is growing by more than 80% monthly, with an average daily trading volume in the billions of dollars.

“Our volumes have grown 80% month-over-month, and we continue to trade billions of dollars in daily volume with clients,(…). We remain confident in the future of crypto and are committed to leading the industry’s maturation.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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