FTX US Warns Users Cryptocurrency Trading May Be Halted In Days Ahead

Zinger Key Points
  • FTX US warns users of trading halt in the near future.
  • The exchange is advising users to close down positions at the earliest.

FTX US, the American arm of beleaguered cryptocurrency exchange FTX, on Thursday warned users that trading may be halted at any time and that users should close down any open position they might have.

"Trading may be halted on FTX US in a few days. Please close down any positions you want to close down. Withdrawals are and will remain open. We will give updates as we have them," according to a red banner announcement on the exchange's website.

The announcement comes at a time when FTX chief Sam Bankman-Fried has repeatedly emphasized that FTX.US is distinct from FTX and is in sound financial standing.

FTX US Derivatives CEO Says Assets Are Secure

Meanwhile, in a letter issued on Thursday morning, FTX US Derivatives CEO Zach Dexter, whose firm was earlier known as LedgerX before being acquired by FTX US, assured clients that their assets are secure and that the business will “soon be entirely separate” from FTX.

Last year, FTX US purchased FTX US Derivatives, a derivatives exchange licensed by the U.S. Commodity Futures Trading Commission, for an unknown sum.

“Our technology infrastructure remains almost entirely separate from the FTX family of companies, and will soon be entirely separate,” he wrote.

“Significantly, the ultimate parent company of LedgerX LLC, namely West Realm Shires Inc., is different from the international family of companies headed by FTX Trading Ltd (aka FTX.com),” he had tweeted.

Wild swings are being witnessed in the crypto markets as investors remain jittery over possible ramifications of the fallout of Binance’s acquisition deal with FTX.

FTX Fighting Liquidity Crunch

Market participants heaved a sigh of relief that the Bankman-Fried-led crypto exchange would be saved from a liquidity crunch once acquired by Changpeng Zhao’s Binance.

Their jubilance was short-lived, as less than 24 hours later, Binance took a U-turn and announced that it has decided not to pursue the proposed acquisition of FTX owing to corporate due diligence, news reports about improper handling of user cash and ongoing probes by U.S. agencies.

Next: Tether Freezes $46M In USDT Owned By FTX In Response To Law Enforcement Reques

Photo via Shutterstock. 

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Posted In: CryptocurrencyNewsTop StoriesMarketsBinanceFTXFTX.USSam Bankman-FriedZach Dexter
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