FTX Appears to Have Stopped Processing Withdrawals

The chaos continues. According to on-chain data, cryptocurrency exchange FTX appears to have stopped processing withdrawal requests.

Cryptocurrency exchange FTX currently finds itself in an ongoing battle with rival exchange Binance and appears to have halted processing clients’ requests for withdrawals. Data from Etherscan reveals that the last outgoing transaction from FTX on the Ethereum blockchain took place at 6:37 Eastern Standard Time. The same is true on the Solana and Tron blockchains.

The crypto market is currently in turmoil as executives from the two largest crypto exchanges, Binance and FTX have been having it out on Twitter. Amid the ongoing conflict, FTT, the token created by FTX has been plummeting over the last 24 hours. The crisis started when Changpeng “CZ” Zhao tweeted that Binance plans to liquidate its FTT holdings. CZ however stated that while his organisation was “not against” anyone, it would not support those who “lobby against other industry players” behind their backs. Since going public with his decision to liquidate Binance’s position in FTT, it has spurred outflows on the exchange and well-known companies to start moving assets from FTX. CEO of FTX, Sam Bankman-Fried, tried to calm the market by tweeting that FTX and its assets are fine. He added that they have been and will continue to process all withdrawals.

2) 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.

Some details on withdrawal speed: https://t.co/tSjhJW3JlI

(banks and nodes can be slow)

— SBF (@SBF_FTX) November 7, 2022

FTX Witnesses Massive Outflows

According to available data, over $451 million in stablecoins have flown out of FTX over the past seven days. FTX is said to be under severe pressure after growing but unsubstantiated rumors around the balance sheet of its sister firm Alameda Research have been purported. Concerns are growing that another Terra-like situation may occur as FTX’s stablecoin reserves have substantially decreased over the last day. Data reveals that stablecoin outflows have led to FTX’s reserve having decreased by $300 million, with the balance sitting at $261 million. Leading withdrawals are firms such as Jump Crypto and Nexo. According to Colin Wu, Jump withdrew $40 million USDC from FTX while Nexo withdrew over $90 million.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.