On-chain data show crypto exchange FTX hasn't processed withdrawal in over two hours

Alex Wong

• Cryptocurrency exchange FTX appeared to have halted processing on-chain withdrawal requests from its clients, according to Etherscan data.
• Specifically, the last token transfer from FTX on the ethereum (ETH-USD) blockchain took effect more than two hours prior to the time of writing.
• And over the past three days, FTX experienced some $6B of withdrawals, way above the typical average daily flows in the tens of millions of dollars range, as the exchange comes under liquidity pressure, Reuters reported, citing FTX CEO Sam-Bankman Fried's message sent to staff.
• FTX did not immediately respond to Seeking Alpha's request for comment.
• The client withdrawals followed Binance CEO Changpeng Zhao's recent remarks about his crypto exchange offloading the rest of its sizable holdings in FTX Token (FTT-USD), the digital token issued by FTX, due to "recent revelations." He likely referenced CoinDesk's earlier story regarding the finances of SBF's hedge fund, Alameda Research.
• Shortly thereafter, SBF noted that "we have been processing all withdrawals, and will continue to be."
• Earlier, bitcoin sinks below $20K as FTX Token at heart of FTX-Alameda drama tumbles.

Comments

[sethmcs]

Billionaire today. Broke tomorrow. We live in interesting times.

[Texas Red]

It's like a bank run, but with no FDIC insurance.