TheBlock reported that cryptocurrency exchange FTX had stopped allowing withdrawals from its system. The report’s assertion is supported by data from Etherscan. The exchange that Sam Bankman-Fried heads is currently engaged in conflict with Binance.
The cryptocurrency exchange allegedly halted processing withdrawals for TRON, Solana, and Ethereum (ETH) (TRX). Director of Research at TheBlock, Steven Zheng, stated:
It appears that FTX has stopped processing on-chain withdrawals from at least their main identified wallets on Ethereum, Solana and Tron. This is weird as there presumably are still people queueing up waiting for their withdrawals.
The report has, however, generated a lot of uncertainty on social media. Although other users have refuted the reports, FTX has not released an official statement.
Zheng clarified the situation on Twitter. With the exception of FTX.US and Blockfolio, the Director of Research for TheBlock requested consumers to get in touch if they were able to withdraw money from the cryptocurrency platform after the initial claim was confirmed.
According to Zheng, these sites are still processing withdrawals. Zheng encapsulated the situation in the following Tweet:
– Team saw FTX stopped processing withdrawals on Ethereum
– Went to confirm on Solana and Tron
– Published story
– Saw withdrawals being processed
– People smarter than me confirmed it was only movements to approve tokens
– No Panik
– Get clout
— Steven (@Dogetoshi) November 8, 2022
Attack on FTX, Executives In Radio Quiet
Since Binance and its CEO Changpeng “CZ” Zhao revealed that they will be selling their $2 billion holding in the platform’s token FTT, FTX has been experiencing a bank run. CZ stated worries regarding the ways in which its rival operated.
Users have started expressing worry about social media sites. FTX made an effort to diffuse the situation, but claims of bankruptcy and the rhetoric of top executives made things worse. The FTX team has yet to provide an explanation in light of the TheBlock article.
I got roughly 8 figures on FTX with KYC processing
Feeling alive again
— Algod🫐 (@AlgodTrading) November 8, 2022
The following is analyst Fran Muci’s response to TheBlock’s study and the current state of the cryptocurrency exchange:
This is likely just a liquidity issue, not a solvency problem. But it highlights why centralized exchanges should be regulated by a serious oversight body. And why at minimum, exchanges should publish audited financials / proof of reserves (…). If FTX is having solvency issues, that would be very big news. It would update the entire industry’s prior beliefs about CEX solvency…
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