FTX US Seemingly Freezes Withdrawals Following Bankruptcy Filing

On-chain data indicates that FTX US – which filed for bankruptcy alongside FTX on Friday – has frozen customer withdrawals. 

According to Etherscan – an Ethereum block explorer – the FTX US wallet hasn’t processed an outbound transaction since 05:20:11 PM UTC on Friday.

  • Trading on the exchange is still live. However, a notice on the site states that trading may be “halted” within a few days, and that withdrawals “are and will remain open.”
  • FTX, the world’s second-largest crypto exchange, froze withdrawals this week following the alleged mishandling of client assets.
  • FTX US, however, is technically separate from FTX’s international exchange, subject to stringent US laws about handling customer funds. Until today, withdrawals were seemingly processed as normal.
  • When former FTX CEO Sam Bankman-Fried tweeted about FTX’s situation on Tuesday, he framed it as distinct from FTX US. “FTX US’s withdrawals are and have been live, are fully backed 1:1, and operating normally,” he said. 
  • He made a similar statement on Thursday, apologizing for his leadership after Binance declined to buy the company. “FTX US users are fine,” he highlighted. 
  • Nevertheless, FTX US was included among FTX and Alameda Research in a bankruptcy filing shared by SBF on Friday. Per the filing, The FTX Group, comprised of over 130 businesses, has assets and liabilities valued anywhere between $10 billion and $50 billion. 
  • Sam Bankman-Fried also initially claimed that FTX’s assets were backed 1:1 before sources leaked its $8 billion liquidity shortfall. The former CEO and billionaire has since deleted those tweets. 
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At the time of the freeze, FTX US’s Ethereum-based wallet holds $42.7 million worth of tokens. These include $18.4 million MATIC and $4.2 million SHIB.

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