Morgan Stanley identifies firms uncovered to FTX with a minimum of $1 billion in danger
Shares in Coinbase got here below renewed promoting strain this week on considerations about spillover from FTX’s collapse earlier this month. However many different firms are additionally uncovered to FTX’s failure. Strategists at Morgan Stanley on Nov. 17 compiled a listing of 63 establishments that could be uncovered to losses or have their capital caught on FTX’s platform. The funding financial institution stated it sourced its info via public disclosures, media experiences and its personal analysis. Corporations named embody lenders, merchants, exchanges and traders. FTX owes its collectors a minimum of $3.1 billion , in keeping with its personal submitting with regulators final week. The beneath desk reveals 19 of the businesses recognized by Morgan Stanley as having important publicity to FTX. Of the 19 firms listed, 15 have confirmed some publicity to FTX (though figures could differ from Morgan Stanley’s estimates). Paradigm, Layer Zero and Ikigai Asset Administration didn’t instantly reply to CNBC’s request for remark. Enterprise capital agency Sequoia Capital was essentially the most uncovered entity on the checklist, with $213.5 million in danger throughout two funds. Sequoia has stated it should mark right down to zero its funding in FTX. Temasek, the Singaporean state-owned holding firm, stated it had invested greater than $200 million in FTX and FTX’s U.S. subsidiary. The fund stated in a press release that its funding thesis was “to spend money on a number one digital asset trade … To make clear, we at the moment haven’t any direct publicity in cryptocurrencies.” Some listed firms, reminiscent of Mike Novogratz’s crypto-focused hedge fund Galaxy Digital , Voyager , Coinbase and Softbank , additionally featured excessive on Morgan Stanley’s checklist of uncovered corporations. The 4 firms have $194.8 million in danger in complete, in keeping with the financial institution. Morgan Stanley additionally named Ledn, BlockFi, Amber Group, Skybridge Capital and Selini Capital as among the many funds with potential publicity to FTX, however the place values had not been disclosed. The danger of contagion from the FTX fiasco stays, Morgan Stanley stated, including that “crypto exchanges will proceed to see outflows within the close to time period as establishments and retail traders both promote belongings or transfer their holdings into offline wallets.” Hopes of restoration for some collectors had been raised Tuesday, nonetheless, after FTX reported that it had situated $1.24 billion money forward of a U.S. court docket listening to.