FTX’s credibility fades after pausing customer withdrawals?

The crypto market is shaking trying to understand FTX’s reasons for pausing customer withdrawals. According to information from The Block, withdrawal transactions on FTX for the Ethereum blockchain exceeded 2 hours in suspension.

The last transaction on record occurred at 6:37 am Eastern time. It’s presumed that the same occurred for withdrawals on the Tron and Solana blockchain.

Withdrawal problems were reported on FTX’s global platform, but not on the North American platform: FTX.US. In the words of Steven Zheng, research analyst at The Block, the Exchange stopped processing withdrawals on its main wallet chains.

“It appears that FTX stopped processing blockchain withdrawals from at least its main wallets – Ethereum, Solana and Tron. This is strange, because there are still people waiting to be able to make their withdrawals.”

These statements came hours after Sam Bankman-Fried, CEO of FTX noted that the withdrawals began with the wave of rumors claiming minimal liquidity from the Exchange.

“In the last 72 hours, we have had approximately $6 billion of net withdrawals from FTX,” and expanded by mentioning that withdrawals at its main subsidiary, FTX.com, are “effectively stalled,” but would be resolved in the “near future.”

Just this morning DiarioBitcoin reported that the exchange was experiencing difficulties responding to the sudden wave of withdrawal requests. Reports also indicated a USD $1,000 limit for these transactions.

In this wave of questions, CoinDesk and Coinglass revealed that FTX has reduced its 20,000 bitcoin reserve to just one in recent weeks.

Has the story between Binance as savior of FTX after making its purchase announcement official come to an end?

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

November last year, Spain attracted the world’s attention by being one of the first…
In a historic collaboration, whiskey producer Jack Daniels and Yahoo Creative Studios joined forces…
A few months ago the bitcoin exchange announced its bankruptcy; however, John Ray III,…