FTX.US seems to have paused withdrawals on Ethereum hours after filing for bankruptcy

Quick Take

  • FTX.US may have stopped withdrawals on ERC-20 tokens.
  • The exchange’s website says that withdrawals “are and will remain open.”

Facing bankruptcy, FTX.US seems to have stopped withdrawals on ERC-20 tokens, according to blockchain data

As of writing, the wallet address associated with FTX.US had not processed any outgoing transactions in more than an hour. That is despite the notice on the exchange's website that currently says that "trading may be halted on FTX.US in a few days. Please close down any positions you want to close down. Withdrawals are and will remain open." Trading hasn't stopped. 

Subject to U.S. law, FTX.US was largely presented as the branch of the company with the most stringent requirements on holding customer deposits. Former CEO Sam Bankman-Fried tweeted three days ago that withdrawals on the exchange "are and have been live, is fully backed 1:1, and operating normally."

The exchange filed for bankruptcy earlier today, despite Bankman-Fried's assurances yesterday that he was trying to save the company. A lockup on U.S. customer funds would be yet more bad news for a company in freefall, and it could, moreover, add to the roster of offenses drawing the ire of U.S. regulators


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