FTX platform users have begun to report problems and delays with withdrawals from platform in Bitcoin and Stablecoin. Crypto-Upvotes excerpts explain what’s going on
Exchange responded with a message on Monday that slow Bitcoin withdrawals were caused by limited network traffic. And problems with stabelcoin transfers arose because banks were closed for the weekend. However, according to the FTX team, withdrawal rates are being restored.
Importantly, analysts at Nansen said on the morning of November 7. That over the past 24 hours FTX has received more than $257 million in USDC due to a noticeable outflow of deposits from FTX.
These funds were transferred from the firm Alameda Research. By that point, significant outflows from FTX’s Ethereum balance sheet had also been seen. It dropped from 493,000 ETH to 162,000 ETH. In total, more than $400 million in assets have been withdrawn from FTX in the last 24 hours.
Our experts explain what happened
Problems began against the backdrop of worsening situation in international cryptocurrency exchanges market. FTX head Sam Benkman-Fried said on October 27 that the exchange is working on the launch of its own Stablecoin. November 2, the media actively began to publish the results of the investigation, which conducted a team portal CoinDesk.
The investigation touched the exchange FTX and the trading firm Alameda Research. These two companies that are considered friendly for the reason that Sam Benkman-Fried owns 50% of FTX and 100% of Alameda Research. Journalists gained access to the second firm’s internal documents and found a large number of FTT tokens on Alameda’s balance sheet.
CoinDesk investigation and reaction from Binance CEO
According to the investigation, Alameda Research had $14.6 billion in assets as of June 30. Of that, $3.66 billion was “unlocked FTT tokens” and $2.15 billion was “FTT in collateral” or “collateralized tokens.” That’s the company’s largest asset and third-largest asset, respectively.
Experts have concluded that most of the net equity in Alameda Research’s business is its own centrally controlled token. Alameda Research said in response to the investigation that it didn’t reveal the full picture. And in fact, the company still has “more than $10 billion in assets.” That’s the amount CoinDesk didn’t mention.
However, the investigation still won – the head of Binance Changpeng Zhao said he would get rid of the FTT token. He recalled that as part of the FTX exit in 2021, Binance received approximately $2.1 billion in cash equivalent in BUSD and FTT tokens.
The head of Binance did not name the reason for the CoinDesk investigation. But he said he was making the decision because of “recent disclosures”. He promised that he would minimize the impact of the deal on the market and expressed his willingness to finalize it in a few months.
According to the head of Binance, the decision against a competitor in the form of FTX is not directed. Because it is important for Binance to maintain the sustainability of the emerging industry. In response, Alameda Research CEO Caroline Allison said she was ready to buy FTT from Binance at $22 per token.
Conclusions of our experts
Our experts suggest that the situation between Binance and FTX is related in part to Changpeng Zhao personal offense to Sam Benkman-Fried. Because Sam Benkman-Fried admitted recently that he is one of the main sponsors of Democratic forces in the U.S. elections.
The head of FTX, Sam Benkman-Fried, is accused of lobbying the U.S. authorities, something the head of Binance cannot do. His exchange often faces pressure and investigations from U.S. regulators. As well as accusations of misconduct for ignoring sanctions.
All this annoys Changpeng Zhao, so in retaliation, he wants to move significant liquidity in the market from one exchange to another. Specifically, from FTX to Binance. Selling FTT tokens after FTX exits may be the first step.