Tether, Circle and Coinbase deny having exposure to FTX and Alameda
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Coinbase CEO Brian Armstrong said that the recent FTX and Alameda debacle was a result of risky practices such as the misuse of user funds.
Amid the liquidity crisis that fell over crypto exchange FTX and trading firm Alameda Research, some of the largest crypto companies face calls for transparency to let users know if there are risks. However, executives assured the community that they do not have exposure to either of the troubled firms.
In response to concerns brought up by the crypto community, Tether CTO Paolo Ardoino clarified in a tweet that the stablecoin issuer has no exposure to either of the distressed firms. According to the Tether executive, Alameda has previously redeemed a lot of Tether USDT $1.00. Despite this, Ardoinohighlightedthat no credit exposure has matured.
Similarly, Circle CEO Jeremy Allaire also denied rumors of the firm having exposure to FTX and Alameda. The stablecoin executive said that their firm does not have any material exposure to both firms. Allaire highlighted that while both FTX and Alameda have been customers of Circle, the stablecoin issuer has not made loans, received FTX tokens FTT $4.02 as collateral or taken any positions on FTT.
Brian Armstrong, the CEO of crypto exchange Coinbase, also took this opportunity to assure its users that the firm has no material exposure to FTX or FTT. Armstrong also highlighted that the crypto exchange has no exposure to Alameda. The exchange executive also criticized the event as a result of risky business practices such as the misuse of customer funds and conflicts of interest.
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