FTX Resumes Withdrawals Amid Liquidity Crisis
Resumption of Withdrawals
According to Etherscan data, FTX resumed withdrawals on Nov. 10 after a brief halt. The exchange's hot wallet, which had been inactive since Nov. 8, showed transaction activity at 3:50 pm UTC. Blockchain records indicate multiple tokens and large sums being transferred out of the wallet, which held a balance of $469 million at the time of reporting.
Financial Struggles and Liquidity Crunch
FTX CEO Sam Bankman-Fried disclosed that the exchange had $16 billion in assets against $10 billion in liabilities. However, the platform is grappling with a severe liquidity crisis. The FTX Token (FTT), a key component of FTX's collateral, lost over $8 billion in value over the past week. Additionally, the exchange faced $5 billion in withdrawal requests on Nov. 6 and allegations of lending user deposits to Alameda Research, further straining its liquidity.
Efforts to Raise Capital
Bankman-Fried announced efforts to secure new capital to address the crisis, following the collapse of a potential bailout deal with Binance. The situation remains fluid as FTX works to stabilize its operations and regain user trust.
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