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Major Ethereum(ETH) Offloaded From FTX, More Trouble?

Manoj Nair



Ethereum (ETH)

As the Binance drama unfolds, there are reports that many Ethereum (ETH) have been offloaded from FTX. A recent transfer of $500 million worth of FTX tokens to the Binance exchange has started a vexed debate about the financial health of the exchange. However, FTX CEO Bankman-Fried has reiterated that everything is fine, but investors are not reassured and have pressed the panic button.

Besides FTT liquidation, major altcoins, like Ethereum(ETH) , are also exiting the FTX exchange. Per the On-chain data provider Santiment, the Ethereum holdings in the FTX exchange have plunged from 322k to 32k. It went on to state that the exit rate reached 500$ETH per minute. The tussle between @SBF_FTX and @cz_binance also contributes to the investors’ anxiety.

The ongoing crypto winter has led to unprecedented situations, and many players have put a hold on withdrawals by users, which has increased concerns within the crypto sector. The latest massive withdrawal of Ethereum(ETH) from the FTX exchange means investors are losing faith and withdrawing different altcoins in panic.

SBF, CEO of FTX, was putting out a brave front and said there is nothing to worry about and things will work out smoothly.

 As per Sam-

“A competitor is trying to go after us with false rumors. FTX is fine. Assets are fine. FTX has enough to cover all client holdings. We don’t invest in client assets (even in treasuries). We have been processing all withdrawals and will continue to be. It’s heavily regulated, even when that slows us down. We have GAAP audits, with > $1b excess cash. We have a long history of safeguarding client assets, and that remains true today”.

Binance Confirms Holding $8 Billion In Ethereum(ETH) Deposits

Binance has confirmed that there have over $8 billion in Ethereum(ETH) deposits on the two cold wallets, and it is not their money but belongs to the investors. Binance also reiterated that it is only a custodian of the funds and rightfully belongs to the investors.

It is unclear if this was another ploy to pirate FTX users, but the price of FTX Token has tanked, and a significant part of its Market Cap eroded.

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