Collapsing crypto exchange, FTX, has commenced withdrawals for its anxious users who have been in a quagmire since the company’s financial and accounting issues started a few days ago. The exchange has started disbursing funds back to users again, even after fellow crypto exchange, Binance, backed out from the decision to help them salvage their situation.
The CEO of Nansen, Alex Svanevik, confirmed the withdrawals via a tweet stating that up to 10 users have been able to withdraw their crypto from FTX into other wallets recently. Manu comments under the tweets admitted to the observation, stating that indeed withdrawals had been restarted on the exchange; while some also noted that the withdrawals restarted after FTX CEO, Sam Bankman-Fried, made a tweet earlier.
What Has Sam Bankman-Fried Got to Say About the Collapse of His Exchange?
Ever since Binance’s refusal to pull through with their agreement with FTX coupled with the escalation of events at FTX, its CEO, Sam Bankman-Fried, has remained largely silent on the issue. Probably he has been pulling some strings and making tough decisions to make the whole saga turn out well, we may not know the reason for his silence. But we do know that he has broken that silence.
In his statement, SBF said that he had not actually disclosed some financial and accounting information about the company. He also added that he had met with some top guns in the cryptocurrency industry to see if they could help with the situation, and noted that there was a particular “partner” whose actions were detrimental to the resultant end of the company.
He also stated that he would always keep the users as the first priority, and to keep that promise he probably decided to start withdrawals.
The Fate of FTX
The fate of FTX seems to be already decided. The company has lost the confidence of users and its financial status is not good. Moreover most other top players in the industry are neither interested nor willing to lend FTX any funds to help salvage the situation. So while FTX token (FTT) experienced a surge in price after the statement of its CEO, Sam Bankman-Fried, the exchange will still be in a big mess but in the face of users the crypto industry and from government and regulatory agencies.