the butterfly effect of FTX continues in France

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

The collateral damage of the fall of the FTX empire is felt more and more on French territory. On November 16, Grégory Guittard, publishing director of Journal du Coin, confirmed on social networks the debacle of Trading du Coin, an Estonian trading company close to the French publication (the two entities are business partners and share shareholders), whose clients reportedly lost around ten million euros. The service indeed rented an automated trading solution for FTX. However, customers were unable to withdraw their funds from the platform founded by Sam Bankman-Fried in time. In addition, Coin Trading also offered a wealth management formula: the losses of this clientele would represent half of the ten million euros mentioned, according to our colleagues from The Big Whale.

“The partnership between Nortia and Coinhouse is not called into question”

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 leader of Coinhouse, Nicolas Louvet, nevertheless made reassuring remarks. Asked by the JDN about this confusion, Coinhouse defends himself: “We have not misunderstood, the context is changing and we are adapting accordingly. We communicated that we would bear the impact of the failure of FTX, even then that crypto-assets are subject to the specific risks of the counterparties. We were informed on Wednesday afternoon, November 16 that this bankruptcy was now impacting other counterparties in our savings accounts. We had no choice but to note the default of these counterparties, and their inability to return at this stage the crypto-assets entrusted to them, which forces us to suspend withdrawals from the savings accounts as well as, as a precaution, investments. For the moment, Coinhouse refuses to mention the amount of the damage due to “still changing parameters”.

On social networks, Nicolas Louvet minimized this Thursday, November 24 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 advisers and their clients with this type of investment product. According to the PSAN, this association “is not called into question”.

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