Blockchain Data Shows a Partial Resumption of FTX Withdrawals

The cryptocurrency exchange known as FTX appears to have started allowing withdrawals on its platform, as shown by data published by Etherscan on November 10.

We hope this is just step one: beginning to find ways to bring liquidity to users.

That is the core thing that I am fighting for right now, and will continue to fight for in whatever ways I can. https://t.co/pzTJBsytVS

— SBF (@SBF_FTX) November 10, 2022

According to the data stored on blockchain, a variety of tokens and significant amounts of money have subsequently been removed from the “hot wallet,” which had a balance of $469 million when this article was published.

FTX Token Plunged By Over $8 Billion

Sam Bankman-Fried, the Chief Executive Officer of FTX, said on Twitter that the company has around $16 billion in total assets compared to $10 billion in total liabilities.

However, the exchange is now experiencing a severe shortage of liquidity due to the steep decline in the value of its native FTX Token over the last week. FTX employs FTX Token in part as collateral.

This was made worse by customers requesting withdrawals totaling over $5 billion on November 6, in addition to reports that the exchange was lending out deposits to a cryptocurrency trading business called Alameda Research.

Even though there has been no official notification about the matter, several unverified allegations were made by Twitter users, in addition to further data obtained from the blockchain, indicating that funds are being removed from the exchange.

On the other hand, several people have voiced their frustration that their withdrawal requests, submitted some days ago, still need to be completed. At this time, around two to three transactions are taking place per minute for money to be removed from the FTX hot wallet.

FTX has stated that it has signed a deal with Tron worth $13 million to enable holders of TRX, BTT, JST, SUN, and HT to switch assets from FTX 1:1 to external wallets. This arrangement was made possible due to FTX’s partnership with Tron.

According to a statement made by the exchange, it is now processing certain withdrawals in compliance with the regulations of the Bahamas, which is where its headquarters are situated.

2) The amounts withdrawn comprise a small fraction of the assets we currently hold on hand and we are actively working on additional routes to enable withdrawals for the rest of our userbase. We are also actively investigating what we can and should do across the world.

— FTX (@FTX_Official) November 10, 2022

Nevertheless, FTX warned that this only applied to funds originating in the Bahamas and stated that the amounts withdrawn comprise a small fraction of the assets currently held on hand. The team is actively working on additional routes to enable withdrawals.