Crypto exchange users are withdrawing large sums of cryptocurrencies following FTX's high-profile collapse.
Over the past 24 hours, approximately $1 billion in ether has been withdrawn from crypto exchanges, according to Nansen CEO Alex Svanevik. $950 million in USDC Coin (USDC), $400 million in tether (USDT) tokens and $195 million in Binance USD (BUSD) has also been withdrawn.
"Exchanges are getting drained," Svanevik said.
The widespread crypto withdrawals are taking place after insolvency issues forced embattled crypto exchange FTX into signing a letter of intent with Binance, which would see the latter take ownership of the former.
The crypto industry is currently trying to take stock of the situation, as well as the degree of contagion present between FTX, sister firm Alameda Research and their various counterparties.
Meanwhile, the prices of cryptocurrencies most closely associated with FTX and Alameda Research are experiencing steep declines.
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.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.