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QCP Has “At Least” US$97 Million Stuck in FTX

QCP is reportedly trying to recoup some of its cash by selling a claim on the frozen funds to distressed asset buyers.

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Reports are surfacing that have revealed Singapore-based crypto trading firm QCP Capital’s losses as a result of the FTX saga.

A report published by The Block last night, citing two persons familiar with the matter, put the figure at “at least US$97 million.”

The source also said that QCP hopes to recoup some of its cash by trying sell a claim on the frozen funds to distressed asset buyers.

The company had previously said it had assets on the now-defunct platform, without stating how much.

Responding to the report, QCP said in a tweet “we have sufficient equity to absorb the impairment from the position. The impairment does not impact our clients nor our counterparties. Withdrawals remain open and trading continues as usual.”

It also noted that its business “remains profitable and healthy.”

“We have seen increasing trading volumes and continue to be a leading market maker for options, with over $38b traded so far this year,” the company said.

FTX filed for bankruptcy last month, and its founder, Sam Bankman-Fried, has been arrested in the Bahamas.

Companies that have been hit by the fallout include Multicoin Capital, Genesis Block HK and Galois Capital, which all reportedly have funds stuck on the exchange. Temasek-backed Amber Group is also being dragged under.

Rumours had previously circulated on Twitter suggesting that Amber “lost all of their funds” on FTX and “is closing down.” At the time, Amber emphasised that it “has no exposure to Alameda or $FTT. But similar to most trading firms, we have been an active trading participant on FTX. While we have significantly reduced our exposure over the course of the week, we still have withdrawals that have yet to be processed.”

Amber claimed their exposure to FTX represents less than 10% of their total trading capital.

Related: “Time Will Tell”: Amber Tries to Quash Bankruptcy Rumours Following Job Cuts