FTX Experienced $6 Billion in Withdrawals Over the Last 72 Hours

Vignesh Karunanidhi
FTX Experienced $6 Billion in Withdrawals Over the Last 72 Hours, Says SBF
Source: CNBC

The week began with a Twitter “war” between two prominent figures in the cryptocurrency realm. Binance CEO Changpeng Zhao and FTX CEO Sam Bankman-Fried almost triggered the beginning of a Twitter-cryptocurrency battle.

Everything started when Binance decided to sell off its FTT tokens. Through a Twitter thread, the CEO of the largest cryptocurrency exchange revealed that Binance received cash equivalents of roughly $2.1 billion (BUSD and FTT) as part of its exit from FTX equity last year. The most recent sale decision, according to him, was motivated by “recent revelations”.

However, things didn’t turn into World War III, as a truce came about. In a recent tweet, CZ declared that it would fully acquire the FTX exchange. Sam Bankman-Fried recently confirmed the same in one of his tweets.

The CEOs of the two exchanges completely agreed on the strategic transaction, according to confirmation from both of them. SBF claims that the “strategic transaction” will protect customers and help clear the backlog. Fried mentioned in a staff message that the exchange saw $6 billion of withdrawals in 72 hours.

SBF addresses over $6 billion in withdrawals in 72 hours

SBF mentioned in a Tuesday morning staff note that the exchange had witnessed over $6 billion in withdrawals. The $6 billion worth of withdrawals were made over the last 72 hours.

“On an average day, we have tens of millions of dollars of net in/outflows. Things were mostly average until this weekend, a few days ago. In the last 72 hours, we’ve had roughly $6b of net withdrawals from FTX. Withdrawals at FTX’s main unit, FTX.com, are “effectively paused,” an issue that would be resolved in “the near future.”

The complete details of the acquisition, including the cost of the acquisition and other details, have not yet been made public. It will be one of the largest acquisitions in the cryptocurrency realm.