Crypto trading firm GSR will cover client losses from FTX collapse, will no longer trade on Huobi
Quick Take
- GSR, one of the oldest trading firms in crypto, will cover client losses from the collapse of crypto exchange FTX.
- GSR CEO Jakob Palmstierna said the firm had no exposure to Alameda and “manageable” exposure to FTX.
Crypto trading firm GSR told employees that the firm has no exposure to Alameda Research and "manageable exposure" to FTX following the crypto exchange's collapse.
"We remain financially sound and are very much looking at this as an opportunity for the medium to long term," CEO Jakob Palmstierna said in an email to employees, which he shared on Twitter.
FTX announced it was facing a liquidity crunch earlier this week and that it would be acquired by rival exchange Binance. The deal with Binance fell through Wednesday. Earlier today, FTX CEO Sam Bankman-Fried said that the firm would look to wind down Alameda.
GSR's exposure to FTX is limited to a single-digit percentage of the firm's cash balance, he added. The firm will cover all client losses on FTX and will no longer trade on the crypto exchange Huobi, Palmstierna said.
RELATED INDICES
Founded by former Goldman Sachs executives in 2013, GSR is one of the oldest market makers in crypto. GSR offers services from market making to over-the-counter trading and risk management services. The firm has also explored NFT market-making.
GSR recently laid off less than 10% of staff following a rapid expansion last year.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
