Mike Novogratz Airs Claims of El Salvador’s BTC Holdings Being on FTX.
CEO of Galaxy Digital, Mike Novogratz, has aired claims on Crypto Twitter, noting that El Salvador’s Bitcoin (BTC) holdings were on the embattled FTX.
Amidst the distressing FTX situation that has rocked the foundation of the cryptocurrency space, billionaire Mike Novogratz mentioned that he had heard claims that El Salvador’s BTC holdings were stored on FTX, prompting concerns as FTX has paused withdrawals amidst insolvency risks.
Novogratz made a comment while speaking on a CNBC Squawk Box episode on Thursday, as he weighed in on the panic pumped into the space by the FTX saga and the ultimate effect on the cryptocurrency scene.
“I read – I don’t know if it’s true – that the El Salvadoran government’s crypto was on FTX, and they’re calling for the extradition of Sam,” Novogratz remarked.
Besides the claim of El Salvador’s cryptocurrencies being on FTX, Novogratz also noted that the fallout arising from the FTX issue is likely to be deep. Notwithstanding, he mentioned that it would not stop the community from “holding together” regardless.
"@FTX isn't #crypto any more than Webvan was the internet back in 1999. People buying, selling and creating derivatives on it will come and go, but #Bitcoin will stay," says @novogratz. "It's going to be a tough period for #crypto companies. You're going to see a lot go under." pic.twitter.com/BoMjvzDK19
— Squawk Box (@SquawkCNBC) November 10, 2022
It is worth mentioning that Novogratz’s Galaxy Digital revealed that it has an FTX exposure of up to $76.8M as it published its Q3 2020 Financial Results on Wednesday. The firm noted that about $47.5M of the funds were in the withdrawal process.
Besides the exposure to FTX, Galaxy Digital’s Q3 2022 Report highlighted a net loss of $68.1M for the quarter. In contrast, Galaxy made a profit of $517M+ in the third quarter of last year.
CZ Talks To Nayib BUkele
Binance CEO talks to El Salvador president Nayib Bukele to confirm the situation; Bukele dismisses Novogratz’s doubts saying El Salvador has no Bitcoin on FTX nor did any business with them.
Man, the amount of misinformation is insane.
I exchanged messages with President Nayib a few moments ago. He said "we don’t have any Bitcoin in FTX and we never had any business with them. Thank God!" https://t.co/CrM5wd24Ha
— CZ 🔶 Binance (@cz_binance) November 10, 2022