Troubled crypto exchange FTX.com resumed withdrawals on the platform, according to blockchain data, after halting such activities on Tuesday because of “liquidity crunches” cited by its co-founder Sam Bankman-Fried.
(Bloomberg) — Troubled crypto exchange FTX.com resumed withdrawals on the platform, according to blockchain data, after halting such activities on Tuesday because of “liquidity crunches” cited by its co-founder Sam Bankman-Fried.
The withdrawal activities halted around Tuesday morning in New York, according to Telegram messages on FTX.com’s customer supporting group and blockchain data provided by data firm Nansen. At the time of publication, FTX.com appears to have fulfilled millions of dollars worth of withdrawal requests by users. Nansen and Kaiko, another blockchain data firm, both confirmed the resumed activities. FTX processed $8 million worth of withdrawals in an hour on Thursday, Nansen said.
The resumed activities bring renewed hope for frustrated traders and investors whose assets were stuck after Bankman-Fried shocked the digital-asset industry on Tuesday, announcing that he was in talks with rival Binance to sell FTX. Sequoia Capital wrote down the full value of its $214 million investment in FTX. A smaller venture fund Multicoin Capital was also impacted.
Binance eventually walked away from the deal, citing “a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations.”
Representatives of FTX did not immediately respond to requests for comment.
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