The collapse of the FTX Derivatives Exchange has sparked a huge awakening for various digital currency trading platforms and investors.

One of the entities that may be significantly affected by this fall from grace is Hodlnaut, the Singapore-based crypto exchange that went bankrupt earlier in the summer.

Based on his previous court filings, it is very likely that Hodlnaut has up to $13 million in deposits held on FTX that he might not have withdrawn at the time the exchange stopped withdrawals this week.

With the alleged insolvency of the trading platform, some investors had begun counting their losses in the expectation that the billions of dollars likely to be tied up in bankruptcy proceedings if the company files for such protection will take a long time to access.

This provision is for exchanges and investors who are still healthy and does not reflect the position that will be more reassuring for other struggling companies like Hodlnaut.

Hodlnaut suspended withdrawals in August, citing difficult market conditions at the time. The withdrawal halt followed similar moves by other more capitalized crypto lending firms, including Celsius Network, Voyager Digital, and Zipmex, among others. About a week after it stopped withdrawals, the platform filed for bankruptcy before the Singapore High Court with investor funds still blocked to date.

In addition to FTX, Holdnaut has blocked funds on other trading platforms, including Deribit, Binance, OKX and tokenize. With over 70% of the $18.3 million held on these trading platforms tagged with FTX, the company may find its own internal challenges compounded if it continues to be unable to withdraw these funds in the current state of affairs.

With the Binance bailout out of the window, other stakeholders, including Tron founder Justin Sun, have pledged to support FTX in a bid to help restore normalcy.

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