Is Multicoin Capital still frozen at FTX?

Some 9.7% of crypto investor Multicoin Capital’s Bitcoin, Ethereum, U.S. dollars, and other assets from one of its funds are still frozen at FTX—even after the firm withdrew about 24% of its assets being held at the exchange early last week, according to a letter the investment firm sent to limited partners last week, obtained by Fortune.

Will FTX collapse cause more failures?

Multicoin Capital, one of the top crypto venture firms, told investors in a letter on Thursday that FTX’s collapse will cause additional failures. “Many trading firms will be wiped out and shut down,” the letter said. Because of its writedown of assets on FTX and the broader drop in crypto, Multicoin said its net performance is down 55% this month.

Will the FTX market get worse before it rebounds?

Crypto venture firm Multicoin Capital told investors in a letter on Thursday that FTX’s collapse and the price declines across the industry has pushed the fund down by 55% this month, and added that the market is poised to get worse before it rebounds.

What happened to FTX in 2022?

According to the letter, in November 2022 the firm quickly created a side pocket (a carveout of the main fund) for assets impacted by FTX. This included assets stuck on the exchange, which are now ensnared in bankruptcy proceedings.