Sam Bankman-Fried (SBF) says, “FTX is fine.”
In a Twitter thread moments ago, FTX chief Sam Bankman-Fried came out to counter FTX-related insolvency claims saying the exchange and its assets are “fine,” and a competitor is perpetuating the rumors.
1) A competitor is trying to go after us with false rumors.
FTX is fine. Assets are fine.
— SBF (@SBF_FTX) November 7, 2022
According to the CEO, the exchange has enough to cover all client withdrawals, asserting that the crypto exchange does not invest client funds. Furthermore, he argues that they have and will continue to process client withdrawals, adding that it is well-regulated and has excess cash exceeding $1 billion.
It is worth noting that Dirty Bubble Media, which also predicted the Celsius collapse last Friday, alleged that Alameda Research was employing the same strategies that destroyed Celsius. Renowned crypto sleuth Coffeezilla summarizing the report noted that FTX might be insolvent as its finances are locked in projects they can not sell.
Notably, the speculations reached a fever pitch after Binance CEO Changpeng Zhao, on Sunday, disclosed that the leading exchange will be selling its FTT holdings which it received in return for early investment in FTX. According to CZ, in a Twitter thread, Binance will sell the FTT worth about $2.1 billion over a few months to minimize the impact on the token’s price. CZ asserts that it is not trying to take a shot at FTX but is trying to reduce its risk exposure in light of recent revelations.
Unsurprisingly, there has been a flurry of tweets urging users to take their tokens off the exchange. Notably, WuBlockchain has already reported that users are experiencing challenges withdrawing due to the volume the exchange is facing.
It bears mentioning that this year has already seen the collapse of several centralized crypto platforms like Celsius and Voyager, with FTX winning the bid to buy out Voyager’s assets. Notably, in both instances, users had also been assured that there was no insolvency risk.
FTT is down 5% in the last 24 hours, trading at the $22.32 price point.