World’s second largest stablecoin of USDC Distributor Circle announced that it has $10.6 million in risk exposure to FTX in its SEC documents.
In the early days of the crisis, the company announced that it had very little investment in FTX.
Circle CEO Jeremy Allaire tweeted on November 9:
“Circle is a minor shareholder of FTX and FTX is a minor shareholder of Circle. Circle is also a minor shareholder of Kraken, Coinbase and BinanceUS.”
stablecoin USD Coin (USDC) and Euro Coin (EUROC) The company behind it is one of the few firms to disclose its risk to FTX since the crypto exchange filed for bankruptcy protection on Nov.
Circle Announces Its Investment In FTX In Its Filing With The SEC
Circle reported the amount of its capital investments in FTX in a Nov. 14 issue with the Securities and Exchange Commission regarding a planned acquisition by special purpose acquisition firm Concord Acquisition Corp, which would make Circle a publicly traded company on the New York Stock Exchange. explained in the file.
A September 30 monthly statement of Circle’s assets shows that approximately $47.3 billion in Coins are in circulation, backed by approximately $47.5 billion held in custody accounts.
The company also said in a statement that it “historically performed payment processing services for FTX Group and has given and repurchased USDC for FTX Group,” and plans to post losses related to FTX in the fourth quarter.
Circle concluded its statement with:
“The company has suspended its services and transactions with FTX Group and is in the process of evaluating its impact on future service provision to FTX Group and the potential financial impact of FTX Group bankruptcy.”
*Not investment advice.
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