Happy Monday, everyone. Today marks the lead-up to Thanksgiving weekend here in the U.S., and the start of the World Cup (go England!), but, for the crypto world, the focus remains very much on the FTX implosion—and which other companies could get swept away in the fallout. Just as Lehman Brothers' bankruptcy in 2008 led to the collapse of other big finance players like Bear Stearns and Washington Mutual, the end of FTX is likely to have a domino effect. But who could get toppled?
Along with lender BlockFi, which filed for Chapter 11 last week, I keep hearing rumors of three companies that are in trouble. The first is Genesis. The trading arm of crypto conglomerate DCG has halted withdrawals—always an ominous sign—and is reportedly insolvent partly due to holding piles of loans owed by FTX and Three Arrows Capital. The company is expected to file for bankruptcy or possibly finagle a long-shot arrangement to get acquired by a traditional investment firm like Blackrock.
