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Jump Crypto denies rumors that it intends to wind down due to FTX losses

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Soar Crypto, a division of the Soar Buying and selling Group, has denied  rumors circulating on-line that it intends to wind down operations resulting from its publicity to FTX losses. 

In keeping with a tweet shared by the corporate on Nov. 17, “Soar Crypto will not be shutting down. We imagine we’re one of the crucial well-capitalized and liquid corporations in crypto.” including that i nonetheless within the enterprise of “investing and buying and selling.”

In a tweet on Nov. 12, the crypto firm expressed shock on the unfolding occasions with FTX and guaranteed its purchasers that its “publicity to FTX was managed in accordance with our threat framework and we stay nicely capitalized.”

Regardless of Soar Crypto’s denial, FTX’s collapse and the fallout from it have left the crypto group skeptical. Market analyst Knower shared in a tweet: “Soar crypto will actually tweet that they’re advantageous and aren’t shutting down however 157 reply guys and threadooooors will nonetheless declare they’re mendacity (as a result of SBF stated the identical factor).”

Associated: FTX fallout continues: BlockFi reportedly mulling bankruptcy, SALT pauses withdrawals and deposits

Belief throughout the crypto group seems to have been compromised by the latest collapse of FTX and the next occasions which have adopted it. Earlier than FTX filed for bankruptcy, former CEO Sam “SBF” Bankman-Fried denied that FTX US had been financially impacted by the “shitshow” that was happening with FTX. Beforehand, Bankman-Fried was insistent that FTX US was “100% liquid” and that “each consumer may absolutely withdraw (modulo fuel charges and many others).” Nevertheless, this was confirmed to be false as soon as FTX Group filed for Chapter 11 bankruptcy and FTX US was included.

Following the collapse of FTX, BlockFi found itself in a similar situation, initially denyin allegations of being in trouble due to being caught up in FTX’s collapse.

BlockFi went from denying rumors that the majority of its assets were held on FTX earlier than the alternate’s collapse to reportedly being on the verge of bankruptcy, solely days after its founder and chief working officer, Flori Marquez, assured customers that each one BlockFi merchandise had been “absolutely operational.”