A Message to Enigma Clients

14th November 2022

The last week, and more broadly the past six months, have proved a challenging time for digital asset markets, and some of the centralized exchanges that supported those markets. Whilst we do not cater to retail clients, we want to express our sympathy to those retail and institutional investors that have been harmed by the mismanagement of these institutions. We expect that legislation, regulation, transparency, and the increasing separation of custody from execution are likely to be at the forefront of the industry going forward.

The collapse of FTX, one of the world’s largest centralized exchanges, is likely the crescendo event of the dominoes falling with lessons for all market participants. However, we stay vigilant. The irony is that blockchain and digital assets were designed to reduce custody and counterparty risk, broaden inclusivity, unlock liquidity, and liberate human and financial capital around the globe. We at Enigma remain ardent believers in this future and have, since day one, built a business geared solely to the best practices and most ethical standards to serve our institutional and corporate clients.

To put it plainly:

Enigma Securities has no material net counterparty exposure to any FTX Group company. We remain fully committed to our model as a high value-add pure liquidity broker and advisor that is more secure and reliable than any digital assets exchange.

We are:

  • Strongly regulated in the UK under the FCA as a Virtual Assets Service Provider.
  • Strict to mitigate counterparty risk with rigorous KYC/AML due diligence and high credit standards.
  • Partners with third-party custodians when custody is required – we NEVER custody client assets.
  • Flexible with post-trade settlement to accommodate our clients in volatile markets.
  • Available 24-hours per day for OTC and client support for global coverage and immediate response.
  • The most resilient electronic trading infrastructure provider with 100% uptime, all time.

In addition to our research, advisory, structured note, and capital raising solutions, we remain 100% committed to our day jobs supporting our clients and the industry at large. We welcome the opportunity to work with all stakeholders be they investors, traders, corporates, institutions, regulators, or the many amazing founders and technologists building the future of digital finance. Please call us any time to discuss how we might best work with you and your team.

Ian Epstein, Enigma CEO and Makor Head of Digital Assets

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