Crypto Prime Broker Urges Clients to Cash Out FTX Positions

WATCH: Kraken Co-Founder and Outgoing CEO Jesse Powell discusses the repercussions of Binance’s FTX deal falling apart on the crypto world, and why he believes investors should ensure any exchange they use operates on a full-reserve basis.Source: Bloomberg

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By Annie Massa

November 10, 2022 at 1:44 AM UTC

This article is for subscribers only.

Crypto prime broker Hidden Road Partners urged clients to sell off all balances and positions on embattled virtual currency exchange FTX.com and to convert them into US dollars, according to an email viewed by Bloomberg News.

Hidden Road, which months ago completed a $50 million funding round with backers including Citadel Securities and FTX’s venture capital arm, FTX Ventures, told clients in a message Wednesday that they have until 7:30 p.m. New York time to liquidate holdings at FTX.com. Hidden Road said that under a clause in customers’ contracts it was declaring an “exchange default.”