Circle Unveils its Investment in FTX in Filling with the SEC
According to a filling with the Securities and Exchange Commission (SEC), Circle, issuer of the stablecoin USDC, holds an equity investment in the FTX Group of about $10.6 million.
FTX’s parent company, Alameda Research, and about 130 other affiliated entities filed for bankruptcy on November 11.
According to Circle’s updated S4 form:
“The company recognizes the depreciation of its investments in the reporting period. We have suspended services and transactions with the FTX Group and are currently evaluating the indirect financial impact of a potential bankruptcy.”
FTX’s liquidity crunch flared up on November 9, and then, Circle CEO Jeremy Allaire posted a thread to allay fears about the impact of the resulting turbulence on the company’s business.
