Ethereum (ETH) Dumped in Major Quantities on FTX Exchange

The recent transfer of $500 million worth of FTX Tokens (FTT) to Binance has brewed major skepticism surrounding the finances of the crypto exchange. However, FTX CEO Sam Bankman-Fried has assured that all operations are working fine but investors have pressed the panic button.

Apart from FTT liquidation, users are withdrawing major altcoins like Ethereum from the main FTX wallet. As per on-chain data, amid the Binance drama, more than 90% of the Ethereum (ETH) has been dumped from the FTX main wallet. On-chain data provider Santiment reports:

In just two days, the amount of #Ethereum held in #FTX‘s main wallet has dropped from 322k to 32k. At one point, the wallet was bleeding 500 $ETH per minute. With the ongoing feud between @SBF_FTX and @cz_binance, expect continued unpredictability.

The crypto winter of 2022 has seen many players freeze user withdrawals. this has led to severe concern among the crypto community. As a result, any negative sentiments result in a sharp reaction as seen in the case of Ethereum withdrawals from FTX.

FTX chief Sam Bankman-Fried has assured that things are working fine. In a tweet yesterday, he wrote:

“A competitor is trying to go after us with false rumors. FTX is fine. Assets are fine. FTX has enough to cover all client holdings. We don’t invest client assets (even in treasuries). We have been processing all withdrawals, and will continue to be.

It’s heavily regulated, even when that slows us down. We have GAAP audits, with > $1b excess cash. We have a long history of safeguarding client assets, and that remains true today”.

Binance Confirms Its Ethereum Holdings

As massive ETH withdrawals take place on FTX, Binance CEO took this chance adding that they have over $8 billion in ETH deposits on the two cold wallets. “These are not our money. They are user assets. We are just the custodian,” he added.

Not sure if CZ was trying to lure FTX users with his statement. The price of FTX Token has plunged by another 20% in the last few hours amid a massive selloff. As of press time, Ethereum (ETH) is also trading 8.4% down at $1451 with a market cap of $178 billion.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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