FTX US Stops Processing Withdrawals, 1 Day After Bankman-Fried Says Company Is 100% Liquid

Zinger Key Points
  • FTX US stops withdrawals hours after filing for bankruptcy.
  • Just a day earlier, Sam Bankman-Fried had assured users the entity was 100% liquid.

FTX US, the U.S. arm of cryptocurrency exchange FTX appears to have stopped processing withdrawals Friday, hours after the company filed for Chapter 11 bankruptcy.

According to on-chain data, there have been no outgoing transactions for nearly 2 hours.

FTX US on Thursday warned users that trading may be halted at any time and that users should close down any open position they might have.

Also read: With Bitcoin, Ether And Altcoins Drowning In A Sea Of Blood, Can Investors Hope To Catch A Falling Knife?

"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," a red banner announcement on the exchange's website said Thursday. 

The Thursday announcement came justhours after FTX founder Sam Bankman-Fried in a Twitter thread emphasized that FTX.US is distinct from FTX and is in sound financial standing.

FTX Files For Bankruptcy

FTX US, FTX, and its sister concern Alameda Research and approximately 130 additional affiliated companies on Friday filed for Chapter 11 bankruptcy in a United States court.

Tron Founder Talks Supporting FTX 

The bankruptcy filing came at a time when Tron founder Justin Sun appeared poised to pump in billions in the company — after due diligence — to bail out the ailing exchange.

Sun said he has entered into negotiations with FTX after Changpeng Zhao, CEO of Binance, walked away from a deal to acquire the Bahamas-based FTX exchange.

When asked if Tron has the resources to rescue FTX from going bankrupt, Sun said the company is ready to cover losses once it finishes doing its own due diligence.

“I don’t have an exact number, but on our side, we know the concept, and I think at this kind of level there is something on the table here,” Sun had said.

Next: Billionaire Mike Novogratz Takes Another Hit: First Luna, Now FTX Is Costing His Crypto Firm Millions

Photo via Shutterstock. 

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Posted In: CryptocurrencyNewsTop StoriesMarketsAlameda ResearchFTXFTX USSam Bankman-Fried
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