Under Bankruptcy filing, FTX freezes the funds of many crypto companies


Many companies are hiding their struggle against the funds that they lost on the FTX exchange and now the Bankruptcy filing by the FTX company is another confirmation that funds will remain frozen in the FTX exchange.

Galois Capital, New Huo Technology, and Nestcoin are those companies that came to light as leading companies that are struggling financially because of a huge amount of funds stuck in the FTX exchange. 

Between 11 November to 14 November, many companies reported that they failed to withdraw funds from the FTX exchange. 

On 11 November, Galois Capital, a crypto hedge fund, confirmed that it had significant exposure to the struggling exchange FTX, while a report of Financial Times confirmed that this hedge fund has $50 million worth of crypto assets on FTX. 

New Huo Technology, which is a subsidiary of Huobi Global exchange, also confirmed that Hbit Limited had $18.1 million worth of crypto assets on FTX and 80% of this amount were user’s deposits.

The Officials of the company said that they will take legal advice to get the funds back because it is a significant amount of funds & if company fails to get stucked funds then in that situation it may result in a big financial challenge.

Nestcoin, a Nigeria-based Web3 focussed project, also confirmed that it had significant exposure to the FTX exchange.

Yele Bademosi, CEO of Nestcoin, talked about this thing on Twitter where he said that the company will reduce its workforce to handle this situation because the company has no funds to pay salaries to the employees.

It is worth noting that the cointracking website Coingecko reported on 13 November that many crypto companies will reduce their workforce in the incoming months because a full negative impact will take place because of the struggle of the FTX exchange.

Read also: Ethereum co-founder suggests remaining away from second world war amid FTX downfall