Following this morning’s bankruptcy proceedings, FTX US has halted withdrawals. Today, the filing for Chapter 11 protection by FTX made headlines, causing billions of dollars worth of assets to freeze.
According to data, FTX US has stopped processing withdrawals, which is concerning for customers who are currently caught in the midst of a massive turnover and the uncertainty that surrounds the disgraced corporation.
The cryptocurrency exchange platform that is in dramatic freefall was reported to have filed for bankruptcy earlier today. Additionally, throughout the process, well-known entrepreneur Sam Bankman-Fried resigned from his position as CEO.
Following such news, the once-prominent crypto platform’s decline continued. According to Coindesk, the platform responded by manually stopping all withdrawals.
Hot wallets linked to the exchange still contained millions of dollars worth of assets at that time, according to the investigation. A realization that follows a week-long liquidity problem set the platform on the path to destruction.
This withdrawal freeze follows FTX’s earlier this week use of the same procedure. On the other hand, as the days passed, some withdrawals began to be processed, and today saw the reintroduction of a suspension.
For FTX and its clients, there is only uncertainty. The bankruptcy filings should give consumers hope that they will be able to get their hands on FTX’s assets. The company’s $10 billion hole, though, may be larger than its liabilities.
FTX has not responded, but on Thursday it issued a warning on its website that trading might be suspended. However, it guaranteed clients that withdrawals would be unaffected. a pledge that turned out to be false.