BlackRock certainly isn’t the last company to speak out about the impact of the FTX collapse.
investment management company black Rock (NYSE: BLK) CEO Larry Fink has revealed that the company is also one of the many affected by the FTX incident. According to Fink, BlackRock invested $24 million in the crypto exchange before it crashed. It is no longer news that FTX has gone completely bust and is now under investigation by the financial watchdog. The collapse of the crypto company also affected many people – including individual and institutional investors.
BlackRock’s CEO talks about its relationship with ftx prior to the unfortunate incident while speaking at the New York Times DealBook conference. Fink said at the time there were apprehensions of FTX’s abuse. However, he did not say whether the company and VC firm Sequoia FTX were victims of fraud. venture capital company announced Its FTX investment in the last month is now zero. The company wrote that it has invested $150 million in FTX.com and FTX.US through its Global Growth III fund. Separately, the exchange and its US division have $63.5 million through its SCGE fund. Calculating its losses with FTX, Sequoia said:
“We are in the business of taking risks. Some investments will surprise to the upside, and some will surprise to the downside. We do not take this responsibility lightly and apply extensive research and due diligence to every investment we make .
FTX is currently in disarray. For a company that was running smoothly at the beginning of the year, the crypto exchange is facing unimaginable challenges. A filing revealed that FTX may have more than 1 million creditors. The filing states:
“As stated in the Debtor’s petitions, there are more than one million creditors in these Chapter 11 Cases. In fact, there may be more than one million creditors in these Chapter 11 Cases. As the Debtors submit that the revised requirements Reason exists to do such that debtors will file a consolidated list of their top 50 creditors.
In addition, the filing revealed that the largest single claim among these estimated 1 million creditors is $226 million. The following is a claim of $203 million. While the identities of the creditors have not been disclosed, FTX collectively owes them all $3.1 billion.
Anyway, BlackRock won’t be the last company to talk about the impact of the FTX collapse. As the situation settles, more are to be revealed about FTX’s operations and investments. Different companies are also coming forward after being victims of accidents. Not long ago, BlockFi Chapter 11 bankruptcy filed Because of its financial ties with the troubled FTX.
Ibukun is a crypto/finance writer interested in delivering relevant information using non-complicated words to reach all types of audiences. Apart from writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
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