Crypto asset manager Ikigai is the latest firm to reveal it held a majority of its funds with FTX on Monday, while troubled lender BlockFi has engaged Berkeley Research Group.
“We had a large majority of the hedge fund’s total assets on FTX. By the time we went to withdraw Monday [morning], we got very little out," Ikigai Chief Investment Officer Travis Kling said over Twitter. "We’re now stuck alongside everyone else."
Kling added in his announcement that the hedge fund would also make a decision about what to do with its venture fund, which was unaffected by FTX and raised $30 million from existing investors in May.
The venture fund's uncertain future underscores the trust issues many crypto firms are facing in the wake of FTX’s massive balance sheet shortfall and bankruptcy.
“It was entirely my fault and not anyone else’s," Kling said on Twitter. "I lost my investors’ money after they put faith in me to manage risk and I am truly sorry for that. I have publicly endorsed FTX many times and I am truly sorry for that. I was wrong."
Ikigai has did not respond to Yahoo Finance’s request for further comment by press time.
Similar to Ikigai, numerous crypto firms are publicly declaring how much in assets — if any — they had on FTX’s platform prior to its bankruptcy filing last Friday.
The list includes Genesis Trading, CoinShares, Galaxy Digital, Wintermute, Crypto.com, Matrixport, and hedge fund Galois Capital. While not all have declared the figure they will try to reclaim in bankruptcy, it has ranged anywhere from $4 to $175 million.
Crypto lender BlockFi, which was bailed out of its financial distress this summer by FTX with a $400 million line of credit, also provided a public update on Monday.
"The rumors that a majority of BlockFi assets are custodied at FTX are false. That said, we do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US," the company said.
The update follows a company decision on Thursday to pause customer withdrawals, while reports came in that its credit card has also stopped working for customers.
Additionally, BlockFi is engaging Berkeley Research Group, the firm which helped market the assets of Voyager Digital through its bankruptcy process.
BlockFi did not respond to Yahoo Finance's request for further comments at press time.
While far smaller in size, the unwinding of FTX might look like MF Global, the commodities hedge fund that went bust in 2011, Greg Plotko, a legal partner with Crowell & Moring who previously worked on the Enron bankruptcy, told Yahoo Finance over the weekend. Like MF Global, Plotko said FTX’s largely institutional investor and trader customer base could mean a number of creditors may want to exit their positions by selling the claims on their assets.
But the larger ramifications for the crypto industry could revolve around trust.
“There’s a ton of pontification on bigger picture issues that could be done right now, but I just don’t have it in me at the moment. I’m pretty disgusted with the space as a whole and kinda humanity in general,” Kling said on Twitter. "If crypto is to recover and continue on its journey to make the world a better place, I believe the entire concept of trust has to be completely rearchitected."
David Hollerith is a senior reporter at Yahoo Finance covering the cryptocurrency and stock markets. Follow him on Twitter at @DsHollers
Dani Romero contributed to this story.