Wednesday, November 30, 2022
HomeCrypto NewsMarketSBF Responds To FTX Insolvency Concerns Says "FTX Is Fine"

SBF Responds To FTX Insolvency Concerns Says “FTX Is Fine”

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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.

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.

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Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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