Ripple CEO Reveals $10Mn Exposure To Bankrupt FTX Exchange
While Ripple’s conflict with the SEC persists, it appears that it has also encountered other issues. Let’s see what’s new with Ripple.
Ripple CEO reveals exposure to FTX!
In a recent fireside discussion on CNBC’s Tech Transformers at Davos, Ripple CEO Brad Garlinghouse revealed that the blockchain payments company had exposure to FTX. He disclosed that Ripple leased around $10 million in XRP to the now-defunct crypto exchange.
He said, “… we did have some exposure to FTX,” the Ripple chief said. “I think … we’ve publicly shared before there’s around just over $10 million of XRP we had leased to FTX that they use for various things on FTX… I’m hopeful that through the bankruptcy process, we get some or all of it back but uh it’s not too consequential to the business.”
Last November, FTX and over 130 companies filed for bankruptcy protection after a bank run exposed an estimated $8 billion hole in its balance sheet. In just 24 hours, the company’s value fell from nearly $32 billion to $1.
Ripple frequently gives short-term XRP leases to market makers and XRP participants for sales. These leases are typically returned to Ripple. Given Sam Bankman-alleged Fried’s fraud, the Ripple CEO stated that it is unclear what the company will receive from the lease. Only 1% of Ripple’s liquid assets were represented by the XRP lease.
The crypto community reacts
This statement that Ripple has had some contact with FTX has drawn attention from the community. While some of them point out lies and remind of earlier statements by Ripple where they have claimed that they have never had any exposure, others offer explanations by stating that they do to market makers to ensure orderly trade and liquidity.
Back in November 2022, it was reported that former FTX CEO Sam Bankman-Fried called him two days before the company filed for bankruptcy, the CEO of Ripple claimed that they discussed whether there were any FTX-owned companies that Ripple “would want to own” during the call.
All these interactions between the two companies have raised eyebrows, especially after Garlinghouse claimed that Ripple’s exposure to FTX has been limited.