The FTX shock wave spreads to French players

After BlockFI it is the turn of the French Coinhouse to pay the price for the bankruptcy of FTX. Even Le Journal du Coin/Trading lost its clients’ funds in this case which will make a date.

Another block in the ponziwall

BlockFi is on the verge of bankruptcy. The company cites a “significant exposure” to the Alameda fund as well as the FTX exchange which went bankrupt.

Problem, BlockFi was counting on a loan of 250 million dollars promised by FTX. This loan was to hold out following the collapse of Three Arrows Capital, where BlockFi had gone to seek returns…

[Trouvez ici notre article expliquant la raison d’être des plateformes comme BlockFi, Celsius ou Nexo qui prêtent de la monnaie fiat en échange de collatéral en shitcoins.]

Unfortunately for BlockFi, these millions were loaned out in the form of FTT (the FTX token) which are no longer worth anything. Speaking of which, the latest revelations about the FTX scandal are hardly believable.

We now learn that this exchange managed from a swimming pool in the Bahamas had no accounting department, nor a precise list of the group’s bank accounts. FTX is not even able to provide a list of its top 50 creditors…

Worse still, the true value of bag of shitcoins held by FTX does not exceed $700,000, compared to the previously announced $5.5 billion. New FTX CEO John Ray says “having never seen anything like it in his career”.

The shock waves of FTX’s bankruptcy are even felt as far away as France…

Diary of a Ruined Trader

The Journal du Trading is a separate branch of the Journal du Coin. The JDT present like a “cryptoasset management service that allows you to benefit from our performance in a simple, completely secure and automated way. »

These “performance” were unfortunately not so secure, since the JDT made the mistake of depositing its clients’ funds at FTX.

Grégory Guittard, publication director of the JDC, admits that Sam Bankman-Fried’s exchange was even “JDC’s biggest customer in 2022 “. “This naturally explains the impression some have of an excessive shill of the platform in recent months”…

Here is an excerpt from communicated from the JDT:

“Given the circumstances, the estimated loss for our customers is approximately 10 million euros. First of all, we would like to show our full and complete support for all the actors affected. […] Indeed, the company, its founders and collaborators have also been heavily impacted. »

For G. Guittard, “nothing could foretell what has just happened”. “That’s why I take full responsibility for the cover we gave them.”

Alongside the JDC, another historic French player finds itself in turmoil following the bankruptcy of FTX: the coinhouse exchange.

Coinhouse suspends withdrawals

Created in 2015 and formerly called the Maison du Bitcoin, Coinhouse is the first French exchange to have registered as a PSAN (Digital Asset Services Provider) with the AMF.

In November 2017, Coinhouse joined the Arizen group with Nicolas Louvet as CEO. Five years later, the exchange offers the purchase of more than 50 shitcoins and has more than 500,000 customers.

The firm even raises 55 million euros in 2022 to accelerate its development in Europe and try to fit into what currently looks like the big flops of “Web3”: metaverses and NFTs.

And we learn this week that Coinhouse has suspended withdrawals until further notice. The reason being that Coinhouse was investing its clients’ money in the giant Genesis to generate the famous return of crypto (up to 6% per year).

However, Genesis has just announced the suspension of withdrawals, also hit by the bankruptcy of FTX. The dominoes keep falling. The Wall Street Journal reports that Genesis is seeking a $1 billion emergency loan.

However, 38% of the deposits placed in Coinhouse’s “Bitcoin passbooks” were invested in Genesis. As well as 40% of the booklets in USDT stablecoin and 40% for those invested in ethereum. In all, 10,000 customers would have placed their money in the passbooks.

In short, we come back to the question that every investor should be asking: where does the return come from?

Where does the yield come from?
“Where does the yield come from? I don’t know, but that’s a dumb question, it’s innovation mate, and it’s virtually risk-free…! You are the yield. »

We recommend much more reliable French players like StackinSat. This Basque company also organizes the largest Bitcoin conference in Europe. Or Paymium, which is quite simply the oldest exchange in the world still in operation.

A great guarantee of seriousness is that StackinSat does not promise returns. In addition, the Basque company does not keep the funds of its customers. The latter are invited to hold their bitcoins themselves.

Not your key, not your bitcoin!

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