Crypto market maker Wintermute has funds stuck on FTX

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Crypto market maker Wintermute has funds stuck on FTX

By Charles Thuo - min read

Crypto market maker Wintermute has confirmed that it has funds stuck in the embattled crypto exchange FTX. However, the firm has said that the amount of funds held in the exchange is not much and they are within their risk tolerance.

Wintermute further said that the funds will not impact its overall financial standings. The firm said that it has put in place risk controls and efforts to remove some of the funds from the exchange prior to the collapse although some funds still remain.

In a tweet Wintermute said:

“We do have remaining funds on FTX, and while this is not ideal, the amount is within our risk tolerances and does not have a significant impact on our overall financial position.”

Firms allay fears of exposure to FTX

As reported in our earlier news, Coinbase, Tether, and Circle have come out to assure their customers that they are not exposed in any way to either FTX or its sister firm Alameda Research after FTX announced plans to sell itself to Binance in the wake of liquidity crunch.

While Wintermute said that it has funds stuck in FTX, it, however, clarified that it has no exposure on FTX’s native token FTT whose price has drastically dropped since the whole FTX saga started.

Wintermute said:

“As a market-neutral trading firm, we do not have any directional exposure to FTT tokens or related ecosystem assets.”