FalconX, the crypto prime broker, told clients its finances are strong despite the exposure it had to collapsed crypto exchange FTX.

"FalconX balances locked on FTX represented 18% of our unencumbered cash equivalents," the company said in an email sent yesterday to clients obtained by The Block. "This ratio was within our counterparty exposure limits."

In the event nothing is recovered from FTX, FalconX said it remains "one of the best-capitalized firms in digital assets." It said it had "decades of runway" and a debt-to-equity ratio of 4%. In addition, it noted that 80% of its balance sheet was in regulated U.S. banks. 

(by Nathan Crooks and Frank Chaparro)