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