FTX Faces Major Transfers After Binance Announced the Liquidation of FTT Tokens

FTX Faces Major Transfers After Binance Announced the Liquidation of FTT Tokens

The data revealed that on November 7th, various investors transfered around $128 million in crypto.

FTX, a Bahamas-based cryptocurrency exchange established in 2019, has been facing major investor withdrawals.

According to the Bloomberg report, FTX stablecoin reserves dropped to $114 million on November 7th. Three days earlier, crypto exchange stablecoin reserves were valued at $394 million.

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Blockchain analyst PeckShield used Twitter to cover the news, claiming that over the past 24 hours, property trading firm, Jump Trading LLC has transferred around $40.4 million worth of USD Coin (USDC) stablecoin from FTX. It is worth noting that since then, Jump Trading moved $6.1 million USDC back to FTX.

However, the transfers don’t stop with stablecoins. PechShield uncovered that around $93.9 million worth of cryptocurrencies were transferred from FTX to the crypto lending platform Nexo. The investor transferred 46,432 Ethereum (ETH) worth around $73.9 million. After some time, the same investor transferred around 10,000 ETH worth around $15.9 million.

Moreover, the investor moved 4,434,163 Fantom Tokens (FTM) worth around $1.2 million, 174,999.8 Chainlink Tokens (LINK) worth around $1.4 million, Dai stablecoin (DAI) worth around $1.1 million, and USDC worth $10.8 million.

Other transferred cryptocurrencies include SAND (SAND), Axie Infinity Shard (AXS), Maker (MKR), 1INCH Token (1INCH), Nexo (NEXO), Matic Token (MATIC), and Tether USD (USDT).

The significant increase in withdrawals comes only a day after Binance CEO Changpeng Zhao (CZ) announced his plans to liquidate all of its FTX Token (FTT) holdings. As the reasoning for such a decision, CZ cited “recent revelations that have come to light.”

It can be assumed that Zhao is talking about the recently leaked balance sheets of Sam Bankman-Fried's Alameda Research. The company is reportedly holding around $5.8 billion worth of FTT tokens, approximately $2.16 billion in “FTT collateral,” and $3.66 billion in “unlocked FTT.”

At the time of writing, the FTT token retails for $18,11, recording a 20,03% price drop in the last 24 hours.

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree


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