FTX Seems To Have Paused Withdrawals After Binance Exodus

Chain data has shown that crypto exchange FTX appears to have paused processing customers’ withdrawals, as highlighted by The Block.

The last transaction from FTX on the Ethereum blockchain was recorded for more than four hours ago as of this writing, with succeeding transactions mostly deposits or purchases. This pause is relatively unusual activity given that the platform has been handling withdrawals at a higher volume after Binance CEO Changpeng Zhao announced full liquidation of its FTT holdings.

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There have been no outgoing transaction recorded in hours as well on the Tron and Solana blockchains.

On Monday, amid the seemingly growing spat between Zhao and FTX CEO Sam Bankman-Fried, FTX’s twitter account posted that its team is working “to process the backlog of withdrawals.”

The two crypto moguls have been throwing cryptic shade that fall short of naming each other. Most recently, Bankman-Fried claimed that “a competitor is trying to go after us with false rumors,” while Zhao retorts with a claim that “a competitor tried to go after us with political lobbyists.”

The reason for the pause is quite unclear and can be due to a number of reasons: a bogged down system due to withdrawal transaction volume, halting trade to prevent further decline of value, or the queue for withdrawals has finally been all satisfied.

Nevertheless, since Binance’s exit and the growing shade-throwing between Zhao and Bankman-Fried, FTT token’s value has crashed 34% and currently trades at its lowest since its ascent in January 2021.

Information for this briefing was found via The Block and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.