Binance Halts FTX Token Deposits as Suspicious Movement of $342M FTT Occurs

Vignesh Karunanidhi
Binance Halts FTX Token Deposits as Suspicious Movement of $407M FTX Happen
Source: The Economic Times

The FTX empire collapsed recently due to various issues. The problems appear to have begun earlier this week when the platform was impacted by liquidity issues. The misappropriation of customer assets along with failed acquisition deals, and more, led to FTX’s official bankruptcy filings and the resignation of its CEO.

The ongoing issues have reportedly been made worse by a hack at FTX. The Telegram administrators warned users that the FTX website “might download Trojans”, which could have an effect on users’ portfolios. Additionally, the hack saw mysterious outflows of nearly $600 million only hours after declaring Chapter 11 bankruptcy.

As per the recent findings, an additional 196 million FTT tokens were deployed. The $342 million FTT deployed lured Binance to pause FTX token deposits on the platform.

Binance paused deposits as 192 million FTT unleashed

The freshly created wallet address saw 192 million FTT tokens inflow. As per the current prices of FTT, the value of the FTT tokens is $342 million. The price of FTT fell by 18.4% in the last 24 hours.

As the new tokens began entering the market, Binance has now paused FTT token deposits on the platform.

“FTT contract deployers moved all remaining FTT supply worth $400 million, which should be unlocked in batches. Not too sure what’s going on”, CZ wrote in a recent tweet.

CZ also addressed that “If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems.”