As the FTX debacle started to unravel last week, a 26-year-old customer of FTX.US who lived in the New York City area faced a thorny dilemma. While he was concerned about the situation that was unfolding, he was hesitant to withdraw his $20,000 worth of holdings from the cryptocurrency platform because he knew it would cost him money. The customer had some outstanding bitcoin
derivatives contracts on FTX.US and to withdraw his money the investor had to put in another $400 to cover some short options he had sold. But as the situation around FTX appeared to worsen, the New York area customer finally made up his mind. He paid the money and put in a withdrawal request last Thursday evening, and received his crypto an hour later.
The next morning, FTX and about 130 related entities, including FTX.US and trading firm Alameda Research, filed for bankruptcy protection in U.S. federal court. “Thank God,” the New York-based crypto investor said. “I was lucky. I dodged it twice.” All FTX customers MarketWatch spoke to for this article requested to remain anonymous, citing fears of repercussions. The customers did share screenshots of their FTX transfers, which MarketWatch was able to review. For the trader MarketWatch spoke with in New York, the FTX collapse was pa …