FTX appears to have stopped processing withdrawals, on-chain data show

Quick Take

  • Crypto exchange FTX seems to have stopped processing withdrawal requests, according to on-chain data.
  • The last outgoing transaction from FTX took place at 6:37 a.m. ET on the Ethereum blockchain.

Crypto exchange FTX, which is currently fighting a battle with rival Binance, seems to have stopped processing clients' requests for withdrawals, according to on-chain data.

The last outgoing transaction from FTX on the Ethereum blockchain took place at 6:37 a.m. ET, more than two hours ago, data from Etherscan show. It's a similar story on the Tron and Solana blockchains as well, on-chain data show. 

An exchange spokesperson did not immediately respond to The Block's request for comment.

“It appears that FTX has stopped processing on-chain withdrawals from at least their main identified wallets on Ethereum, Solana and Tron," said Steven Zheng, a research analyst at The Block. "This is weird as there presumably are still people queueing up waiting for their withdrawals."

FTX has been facing client withdrawals after Binance CEO Changpeng Zhao said that the exchange would begin selling off its holdings of FTT, the exchange's token. Zhao cited "recent revelations" for the decision — seemingly in reference to an earlier report from CoinDesk that revealed details of sister firm Alameda Research's balance sheet. 

After Zhao's tweets, FTX CEO Sam Bankman-Fried tried to calm the market. He said yesterday that the exchange is “fine,” and called for FTX and Binance to work together for the good of the industry. Alameda CEO Caroline Ellison had offered to buy Binance’s FTT holdings at $22 per token.

FTT is currently trading at around $17.50, according to data from CoinGecko

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

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