FTX CEO Told Staff Crypto Exchange ‘Effectively Paused’ Withdrawals – Bitcoin News

An FTX employee has shared a report stating that before Binance’s announcement of its acquisition, CEO Sam Bankman Fried said that FTX received approximately $6 billion in withdrawals within 72 hours. Furthermore, the staff member’s account notes that withdrawals on the exchange FTX.com were “effectively paused.”

Report claims that FTX CEO said the Exchange saw $6 Billion in Withdrawals within 72 Hours. Crypto Markets plummet following the Acquisition News

It’s been a crazy day in the world of crypto as Binance, the largest exchange in terms of digital currency trade volume, has said it is set to acquire the crypto trading platform FTX. Sam Bankman Fried (CEO of FTX) confirmed that the transaction would occur and stated the details would be disclosed in due course.

When Binance’s CEO Changpeng Zhao (CZ) told the public Binance would acquire FTX, the executive mentioned a “significant liquidity crunch.” Wall Street Journal (WSJ) reporter Liz Hoffman explained that her sources detailed that FTX was “canvassing deep pockets in Silicon Valley and Wall St” this a.m. “before securing an emergency lifeline from rival Binance.”

Hoffman’s sources saidTwo people claimed that FTX wanted more than $1Billion. “Those [people]According to one person, it was a classic bank run: panicked investors pulled money out of FTX quicker than it could sell assets in order to generate cash. One person briefed on the fundraising blitz said what started as a $1bn ask was looking more like $5bn-$6bn by midday,” Hoffman added.

According to a Tuesday report, Reuters saw an alleged conversation between Bankman Fried and FTX employees. According to Reuters’ report, Bankman-Fried claimed that employees were experiencing a huge influx of withdrawals. “On an average day, we have tens of millions of dollars of net in/outflows. Things were mostly average until this weekend, a few days ago,” the FTX CEO is quoted as saying.

According to Bankman-Fried, he added:

In the last 72 hours, we’ve had roughly $6b of net withdrawals from FTX.

The Reuters report further says that employees were told withdrawals on the exchange FTX.com were “effectively paused,” and that more details would be released in “the near future.” “Most of the details [of the deal] still aren’t hashed out,” Bankman-Fried ostensibly remarked. Although the initial dip in crypto currency was caused by speculation about FTX, many of the most important crypto assets have rebounded since CZ announced the news.

The crypto economy healing did not last long, and after more reports came out concerning FTX’s affairs, the news seems to have frightened investors. BTC dropped 14.6% within 24 hours, and ethereum fell 19.8% to the U.S. Dollar. ETH is now trading at $1,300/ether. BTC and ETH have both rebounded a little, with BTC now falling. 12.5% and ETH are down 17% against greenback.

In this story, tags
Binance, Binance CEO. Binance is Binance’s CEO. Bitcoin, Changpeng Zhao CZ., CZ. effectively paused. Ethereum, FTX CEO. FTX withdrawals. liquidity crunch. Liz Hoffman. Reuters Report. Sam Bankman Fried, Wall Street Journal reporter. WSJ

What do you think about Reuters’ report that says FTX CEO Sam Bankman-Fried said FTX withdrawals were effectively paused prior to the Binance acquisition? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman is an active participant in the cryptocurrency community from 2011. Since 2011, Redman has been an active member of the cryptocurrency community. Redman has contributed more than 6000 articles to Bitcoin.com News since September 2015. These articles are about disruptive protocols that are emerging.

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