FTX Faces $6 Billion Withdrawal Crisis: What Happened?
The cryptocurrency world is reeling after a massive banking panic hit Cryptocurrency exchange FTX. As Reuters has learned, over the last 72 hours, around $6 billion have been withdrawn from the exchange. This staggering figure highlights the severity of the liquidity crisis currently engulfing the company.
The $6 Billion Exodus: FTX Under Pressure
The details emerging are alarming. FTX crypto exchange saw $6 billion worth of withdrawals in 72 hours after Binance cancelled their purchase deal and the US launched a probe against FTX for trading practices. This confluence of events triggered a rush to the exits, leaving FTX scrambling to meet withdrawal demands.
According to a message to staff sent by its CEO Sam Bankman-Fried, cited by Reuters, FTX saw around $6 billion of withdrawals in the 72 hours before Tuesday morning. This revelation paints a clear picture of the intense pressure the exchange was under.
CEO Sam Bankman-Fried Addresses the Situation
The message from CEO Sam Bankman-Fried to his staff, cited by Reuters, confirms the scale of the problem: FTX saw $6 billion of withdrawals in the 72 hours before Tuesday morning. The rush for the exits was unprecedented, leaving the company struggling to maintain operations.
The Impact on FTX.com
The sheer volume of withdrawals has had a significant impact on FTX\'s operations. As Bankman-Fried admitted, "In the last 72 hours, we’ve had roughly $6b of net withdrawals from FTX." Furthermore, withdrawals at FTX’s main unit, FTX.com, are “effectively paused,” an issue that would be affecting countless users attempting to access their funds.
What Does the Future Hold for FTX?
The situation remains fluid, and the future of FTX is uncertain. The $6 billion withdrawal crisis has exposed vulnerabilities in the exchange\'s financial stability and raised serious questions about its leadership. Keep checking back for more updates as this story develops.