Crypto asset manager Ikigai has admitted it holds the “vast majority” of its assets on the now-defunct crypto exchange. ftx, saying that “very little got out” before collapsing. But the company is far from out of touch with Sam Bankman-Fried’s once-mighty empire.
“Unfortunately, I have some very bad news to share,” Travis Kling, head of the crypto-focused fund, opened a recent Twitter thread by telling his followers. He further added that Ikigai was “caught up in the FTX collapse” and that “a substantial portion of the hedge fund’s total assets” were on the exchange.
“Until we went to take back Monday [morning], we turned out to be very short. “Now we’re stuck with everybody else,” said Kling, a former portfolio manager in the traditional finance world.
In a 10-tweet thread, Kling further explained that his team has been in “constant communication” with investors since Monday last week, while also taking full responsibility for the sad outcome.
“It was completely my fault and no one else’s. I lost my investors money after trusting me to manage risk and I am really sorry for that. I publicly supported FTX many times And I’m really sorry for that. I was wrong,” Kling wrote.
Finally, Kling describes what, in his view, has gone wrong in the crypto industry:
“If crypto is to recover and continue its journey to make the world a better place, I believe the entire concept of trust needs to be completely reimagined. Bitcoin is trustless. built all these reliable things around, and those things have failed catastrophically.
Responding to the Twitter thread, several prominent members of Bitcoin And the crypto community came out in support of Kling and his fund:
Ikigai is far from the only firm with exposure
While Ikigai may have been one of the funds that suffered the biggest losses on a relative basis in the FTX collapse, it was far from the only crypto fund affected by it. Well-known companies such as CoinShares, MultiCoin Capital, Amber Group and Genesis Trading, among many others, have reported exposure to the now-defunct exchange.
,CoinShares confirms strong financial health and amounts to limited exposure to the FTX exchange,” the European crypto asset manager said in a statement shortly after the FTX collapse.
Similarly, major crypto market maker Genesis Trading also acknowledged the risk to FTX, saying in a tweet that their derivatives business had $175 million of funds on the exchange that are now locked.
“This does not impact our market making activities,” the firm said.
A statement was also made by crypto trading firm Amber Group, which claimed that “there is no risk to Alameda or FTT.” However, the firm acknowledged some risk to the FTX exchange, saying “we still have withdrawals that have yet to be processed.”
,[…] With strict risk limits on individual trading positions, this represents <10% of our total trading capital. This does not pose a threat to our business operations or liquidity," Amber Group said.
Finally, crypto investment fund Multicoin Capital has not published any public statements regarding its exposure to FTX. However, a private letter obtained by The Block reveals that the firm was also affected by the collapse of FTX, with around 10% of the Multicoin Master Fund’s total assets under management (AUM) stuck on the exchange.
“Unfortunately, we were not able to withdraw all of the fund’s assets on FTX. Assets including BTC, ETHand USD pending for withdrawal and represent approximately 15.6% of the assets in the fund (excluding side pockets) and approximately 9.7% of the total fund AUM,” the letter said. according to the block.
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