Celsius Has $1M in SRM Tokens Stuck on FTX and $13M in Loans to Alameda
Celsius recently stated they have been keeping a close eye on FTX’s implosion and revealed how bad their exposure to the rapidly-collapsing company is. Celsius is just one of the hundreds of companies that are likely to suffer due to the fall of SBF’s empire.
Celsius Has 3 Million SER Tokens Locked on FTX
Celsius, a company that itself had to file for bankruptcy in part due to the reckless behavior of its CEO, recently tweeted they have been “closely monitoring” the events surrounding FTX and added that they are “keeping in close communication on these matters with key stakeholders”. The company stated it has around 3 million Serum (SER) tokens worth around $1 million stuck on FTX.
The company also has some loans to Alameda Research, the company that reportedly served as a major “black hole” for FTX users’ funds, worth about $13 million. According to Celsius’ announcement, most of these loans are in FTT and are currently under-collateralized.
Celsius itself recently had a December date for an auction of its assets approved by a bankruptcy court. Its proceedings and collapse have also been a difficult matter as the company is suspected of operating as a Ponzi scheme since at least 2020.
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What Will the Consequences of FTX’s Fall Be?
Considering FTX has been a major player in the industry, the spillover effects of its collapse are likely to be major. Its Thursday bankruptcy filing alone involves more than 130 companies that operated under the FTX group. Additionally, Sam Bankman-Fried’s crypto empire had direct access to around 250 other crypto companies.
Several hours before FTX announced its bankruptcy filing, BlockFI halted withdrawals from its platform due to the contagion. Voyager Digital, a bankrupt company recently acquired by SBF, announced it reopened the bidding process and is “in active discussions with alternative bidders.”
The effects of the collapse have already appeared outside the crypto space. The Ontario Teachers Pension Fund invested $75 million in FTX and FTX US in 2021 and made another investment of $20 million at a later date. On the other side of the spectrum, some companies like Coinbase have been quick to announce they have no exposure to the collapsed exchange and have gone on to reassure customers that a similar fate can’t befall them.
While the exact scale of the aftermath of FTX’s collapse is hard to determine, the general outlook is mostly bleak. Binance’s Changpeng Zhao likened the situation to the crisis of 2008 and compared FTX to Lehman Brothers.
Do you think FTX’s collapse will create a major domino effect in the crypto sector? Let us know in the comments below.