As Coinbase shares slide, Morgan Stanley lists major firms with potential FTX exposure
Shares in Coinbase came under renewed selling pressure this week on concerns about spillover from FTX’s collapse earlier this month. But many other companies are also exposed to FTX’s failure. Strategists at Morgan Stanley on Nov. 17 compiled a list of 63 institutions that may be exposed to losses or have their capital stuck on FTX’s platform. The investment bank said it sourced its information through public disclosures, media reports and its own research. Companies named include lenders, traders, exchanges and investors. FTX owes its creditors at least $3.1 billion , according to its own filing with regulators last week. The below table shows 19 of the companies identified by Morgan Stanley as having significant exposure to FTX. Of the 19 companies listed, 15 have confirmed some exposure to FTX (although figures may differ from Morgan Stanley’s estimates). Paradigm, Layer Zero and Ikigai Asset Management did not immediately respond to CNBC’s request for comment. Venture capital firm Sequoia Capital was the most exposed entity on the list, with $213.5 million at risk across two funds. Sequoia has said it will mark down to zero its investment in FTX. Temasek, the Singaporean state-owned holding company, said it had invested more than $200 million in FTX and FTX’s U.S. subsidiary. The fund said in a statement that its investment thesis was “to invest in a leading digital asset exchange … To clarify, we currently have no direct exposure in cryptocurrencies.” Some listed companies, such as Mike Novogratz’s crypto-focused hedge fund Galaxy Digital , Voyager , Coinbase and Softbank , also featured high on Morgan Stanley’s list of exposed firms. The four companies have $194.8 million at risk in total, according to the bank. Morgan Stanley also named Ledn, BlockFi, Amber Group, Skybridge Capital and Selini Capital as among the funds with potential exposure to FTX, but where values had not been disclosed. The risk of contagion from the FTX fiasco remains, Morgan Stanley said, adding that “crypto exchanges will continue to see outflows in the near term as institutions and retail investors either sell assets or move their holdings into offline wallets.” Hopes of recovery for some creditors were raised Tuesday, however, after FTX reported that it had located $1.24 billion cash ahead of a U.S. court hearing.
