the butterfly effect of FTX continues in France

The crisis caused by FTX’s bankruptcy is also closely affecting French investors. Customers of the Coinhouse platform and Coin Trading are among the victims.

The collateral damage from the fall of the FTX empire is felt more and more on French territory. On November 16, Grégory Guittard, publishing director of the Journal du Coin, confirmed on social networks debacle of Trading du Coin, an Estonian trading company close to the French publication (the two entities are business partners and shareholders), whose clients allegedly lost around ten million euros. The service actually leased an automated trading solution to FTX. However, customers were not able to withdraw their money from the platform founded by Sam Bankman-Fried in time. In addition, Coin Trading also offered a wealth management formula: the losses for this clientele would represent half of the said ten million euros, according to our colleagues from The Big Whale.

“The partnership between Nortia and Coinhouse is not in doubt”

At the same time, the French platform Coinhouse has also caused concern since the announcement on November 17 of the suspension of its crypto-passbook services due to the default of one of its Genesis counterparties, victim of the default of FTX. . Six days earlier, the head of Coinhouse, Nicolas Louvet, nevertheless offered reassuring remarks. Asked by JDN about this confusion, Coinhouse defends itself: “We have not misunderstood, the context is changing and we are adapting accordingly. We communicated that we would bear the impact of the fiasco with FTX, even as cryptoassets are subject to to the counterparties’ specific risks. We were informed on Wednesday afternoon, November 16, that this bankruptcy now affected other counterparties in our savings accounts. We had no choice but to note the default of these counterparties and their inability to recover from this. stage the crypto-assets entrusted to them, forcing us to suspend withdrawals from the savings accounts as well as, to be safe, investments.At the moment, Coinhouse refuses to mention the size of the damage due to “constantly changing parameters”.

On social networks, Nicolas Louvet this Thursday, November 24, minimized the impact of this situation by qualifying this offer of booklets of “minor and isolated activity”. Coincidentally, the day before the suspension of this service, Coinhouse announced a partnership with Nortia, a wealth management solutions platform, to provide management advisors and their clients with this type of investment product. According to PSAN, this association is “not in doubt”.

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