Matrixport reveals FTX exposure; 79 users incurred losses as result

Quick Take

  • Matrixport had exposure to FTX through its bitcoin fixed income products. 
  • Result is 79 of the firm’s clients incurred losses.
  • FTX filed for Chapter 11 bankruptcy after Matrixport wrote to customers. 

Matrixport, a crypto financial services platform that bills itself as a neo-bank, revealed to clients that three of its products have exposure to FTX. 

Matrixport's bitcoin fixed income products, including bitcoin fixed income products and smart trend products that use BTC Fixed Income Product as underlying, as well as the Victoria bitcoin fund products, which have a total of 79 users, have incurred losses as a result, it said in a letter to clients.

Ross Gan, the company's head of public relations, later informed The Block that “79 clients incurred losses via exposure from 3 products on our platform and they have been informed accordingly. Matrixport continues to operate normally and the company has no risk of insolvency with respect to the developments at FTX and Alameda.”

The letter stressed that the firm's other products are segregated, so that "a single impacted product will not affect the other products."

FTX has since filed for Chapter 11 bankruptcy. FTX  is seeking bankruptcy protection in Delaware. In addition to FTX Trading, more than 100 corporate entities affiliated with FTX, including Alameda Research, are also filing for bankruptcy.


This story was updated with a comment from Matrixport.


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