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Johnny Crash
Nov 08, 2022 11:15AM ET
Greedy people losing money, nobody cares
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FTX stops processing client withdrawals after deposit run - report
Published Nov 08, 2022 09:09AM ET
Updated Nov 08, 2022 09:18AM ET
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By Geoffrey Smith
Investing.com -- Cryptocurrency exchange FTX has suspended client withdrawals after suffering a massive run by its depositors, The Block reported on Tuesday citing its own blockchain analysis.
The Block reported that the last outgoing transaction from FTX took place at 06:37 ET (11:37 GMT) on the Ethereum blockchain.
If confirmed, the development would signify a dramatic turnaround for a company that had until recently styled itself as a savior of the cryptocurrency space, having bailed out a handful of platforms who had been wrong-footed by the collapse of the Terra/Luna network.
FTX's fall from grace began last week, when Coindesk published what it claimed to be a balance sheet from Alameda Research - a hedge fund majority owned by FTX CEO Sam Bankman-Fried - that appeared to show a massive overvaluation of FTX's native token, FTT.
The report triggered a wave of redemptions from the exchange, the most important of which was by rival and one-time collaborator Binance, which pulled nearly $600 million in funds at the weekend, according to its chief executive Changpeng Zhao.
On Monday, Bankman-Fried had claimed on social media that "a competitor is going after us with false rumors" and had insisted that the exchange and its assets were "fine".
He attributed lengthy delays in processing withdrawal requests to capacity bottlenecks.
FTT resumed its decline on the news, having dropped as much as 30% overnight before rebounding a little. By 09:30 ET, it was trading at $15.7975, down 29% on the day.
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Comments (5)
Ace JD
Nov 08, 2022 11:14AM ET
when you buy hot air you get gassed.
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G D
Nov 08, 2022 10:46AM ET
Classic crypto
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Ben Bigs
Nov 08, 2022 10:08AM ET
Scam
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Stan Smith
Nov 08, 2022 10:03AM ET
It has been found that the number of new blockchain companies globally has decreased by 93.9% since 2018 (from 8,112 in 2018 to 492 in the first half of 2022). Why anyone would invest in this scheme is beyond me...don't expect to get your money back either.
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