CEO of FTX platform declares US division never affected.. Is there hope for platform to bounce back?
CEO of FTX platform declares US division never affected.. Is there hope for platform to bounce back?
FTX CEO Sam Bankman-Fried – better known as “SBF” – issued a lengthy apology for what happened. He posted on his Twitter account He assured the crypto community that the latest event will only affect international FTX. According to him, “FTX US, the US platform that accepts Americans, was not financially affected by this incident.” He assured users that FTX US is still operating normally and every user can trade and withdraw fully and mentioned that updates are coming to the FTX US platform.
19) Some other kind of comments:
This is about FTX International. FTX US, a US based exchange that accepts Americans, was financially unaffected by this shitshow.
It is 100% liquid. Each user is fully refundable (modulo gas charges etc.).
Its future updates are coming.
— SBF (@SBF_FTX) November 10, 2022
However, many have started questioning the veracity of his statement as the recent announcement on FTX US has started to shock users, who feel that there is some inconsistency between his statement and what is actually happening. The FZX US platform announced that it would cease trading on its platform within days and said that withdrawals are open and will remain open. The announcement urged platform users to quickly close any positions they wish to close.
FTX International’s liquidity problems were triggered over the past seven days when Binance CEO Changpeng “CZ” Zhao announced that his exchange would liquidate its holdings of FTX’s FTT token.
The CZ announcement started a run on the bank as FTX users attempted to withdraw funds only to find that the platform did not have enough liquidity on hand to meet the demand.
Also Read: Collapse of One of the Biggest Cryptocurrency Exchanges, FTX Platform… And Why?
In the past week, reports emerged that Bankman-Fried called investors and said the platform needed $8 billion in emergency funding to help cover withdrawal requests and was looking to raise $3 billion to $4 billion.
Cointelegraph reported on October 10 that data from Etherscan indicated that cryptocurrency exchange FTX had resumed withdrawals.
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