Cryptocurrency exchange FTX was rocked by nearly $6 billion in withdrawals in the 72 hours before Tuesday morning, according to a message sent to staff by the company’s CEO, Sam Bankman-Fried, and seen by Reuters.
Changpeng Zhao, the boss of the company’s major rival Binance, said in a surprise move today that he has signed a non-binding agreement to acquire FTX’s non-US unit, FTX.com, to help address the “liquidity squeeze” in FTX.
FTX’ CEO Sam Bankman-Fried: “We Have De facto Stopped Withdrawals on FTX.com”
FTX CEO Sam Bankman-Fried told his employees in his message:
“In an average day, we have tens of millions of dollars in net inflows/outputs. A few days ago, things were mostly average until this weekend.
We have processed approximately $6 billion in net withdrawals from FTX in the last 72 hours.”
Bankman-Fried added that withdrawals from FTX’s main unit, FTX.com, are “de facto paused” and that this issue will be resolved “in the near future.”
“Most of the details of the deal are still not clear,” Sam Bankman-Fried added, adding that he doesn’t have “a definitive answer” to questions like “what exactly is the payment process” and “what entities it will involve”.
In the latest development, after the CFTC announced that it is closely examining the incident between Binance and FTX. FTT The token had already deepened its ongoing decline. The token, which fell below 10 dollars, is traded at $ 7.30 at the time of writing, with a 56% decrease in the last 24 hours.
*Not investment advice.
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