TechFlow News — In a new regulatory filing, Circle, the issuer of USDC, stated that the collapse of FTX and the automatic conversion of USDC on Binance will cause its performance to be "significantly below" expectations set in February. Circle disclosed in the regulatory document that the "minimal" equity stake in FTX mentioned by Circle CEO Jeremy Allaire on Twitter last week refers to the company's $10.6 million investment in the FTX group.
In its amended S-4 filing, Circle wrote that it will recognize an impairment of its investment in FTX during the reporting period when indicators of impairment arise. The company has suspended services and transactions with the FTX group and is assessing the implications for future service provision to FTX, as well as potential indirect financial impacts resulting from the FTX group’s bankruptcy.Source
