According to a report shared by an FTX staff member, prior to Binance announcing it would acquire the exchange, CEO Sam Bankman-Fried explained that in 72 hours FTX saw roughly $6 billion in withdrawals. Furthermore, the staff member’s account notes that withdrawals on the exchange FTX.com were “effectively paused.”
Report Claims FTX CEO Said Exchange Sees $6 Billion In Withdrawals In 72 Hours, Crypto Market Plunges After Acquisition News
It has been a crazy day in the crypto world as Binance, the largest exchange in terms of digital currency trading volume, has said that it is set to acquire crypto trading platform FTX. In addition, FTX CEO Sam Bankman-Fried confirmed that the transaction will take place, adding that details related to the deal will be revealed in the future.
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 source Told Two people said FTX was seeking more than $1 billion. “they [people] said it looked like a classic run on the bank: panicked investors pull money out of FTX faster than it can sell assets to produce cash. One person told of the fundraising blitz that what started out as a $1bn asking was looking like $5bn-$6bn by noon,” Hoffman couple,
The news outlet Reuters has seen an alleged conversation between Bankman-Fried and FTX staff, according to a report published on Tuesday. The Reuters report explains that the message shows Bankman-Fried told employees it was seeing a massive 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.
Banksman-Fried reportedly added:
In the last 72 hours, we have netted approximately $6b 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. While the crypto economy initially dipped when speculation concerning FTX was heightened before the acquisition, a number of leading crypto assets rebounded after CZ revealed the news.
The healing of the crypto economy didn’t last long, and as more reports emerged about FTX cases, the news has stunned investors. BTC is down 14.6% in 24 hours and Ethereum (ETH) is down 19.8% against the US Dollar, trading below $1,300 per ether. Since BTC is now down, both coins have managed to retrace a hair Against the greenback, 12.5% and ETH are down 17%.
