From the time FTX exchange was found to be involved in unprofessional activity by misleading its users, it has faced nothing but losses.
The leakage of the balance sheet from the FTX exchange has resulted in the crash of the exchange. Just when the crash was reported, all the FTX users were worried about their funds and their accounts.
Most of all, it was the FTX US users who were panicking due to the investments made through the exchange. Sam Bankman-Fried, the founder of FTX did communicate that FTX US was independent.
Still, the investors were not convinced as they tried hard to withdraw their funds from the exchange. The
FTX founder did try to communicate that there was nothing wrong with the exchange but people had their guards high.
FTX has Paused Withdrawals
Turns out, the worst fears of the FTX US users were somewhat true as the exchange has just made a shocking announcement.
According to the latest reports, the FTX US exchange has announced that it has halted withdrawals for users.
The exchange had hinted on November 11 that it may suspend its withdrawals. The recent update from FTX US has confirmed that it has indeed suspended access for the users to request any withdrawals.
Exchange Warned Pausing Trading
In addition to hinting, it would pause withdrawals, the exchange had also cautioned the users it may halt trading service.
So far, the exchange has paused the withdrawal access for the users. However, the exchange did communicate to the users that they should close down any positions they have opened on the exchange.
FTX International has Gone Bankrupt
FTX US seems to have halted the withdrawal service for the users following the news involving FTX International.
After a few days after the crash, FTX International announced that it is filing for Chapter 11 bankruptcy.
The bankruptcy has been filed in the United States so the regulators are going to take serious actions against it.
Binance Withdrew from the Deal
As the FTX International exchange faced a financial crisis, its founder started to look for possible solutions.
It was decided that he would find investors who would help the exchange deal with the financial crisis. Binance did announce that it was forming a strategic deal and it would buy FTX.
However, Binance had to back out as the damage taken by the FTX exchange was beyond fixing. This pushed SBF to the wall and with nowhere else to go, he decided to go for filing Chapter 11 bankruptcy.
Whether it is the international FTX platform or the US FTX platform, it is the FTX Token (FTT) that takes the hit at the end of the day.
This is the reason why the price of FTT has continued declining ever since the FTX crash happened. As of now, FTT’s trading price is at $1.67 and it has suffered a 94% loss in value in the past 7 days.