FTX CEO Sam Bankman-Fried Speaks Out Amid Binance Drama – Denies Insolvency, Says Withdrawals Will Continue

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Sam Banksman-Fried. Source: Screenshot A Video, HBO/YouTube

FTX CEO Sam Bankman-Fried has denied bankruptcy rumors amid growing speculation that his exchange is facing liquidity issues, as evidenced by Binance’s move to dump all of its FTX holdings.

In a series of tweets on Monday, Bankman-Fried referred to the speculation as FUD, claiming that a “competitor” is responsible for manipulating public opinion about the company.

“FTX is fine. Asset is fine,” he said. “FTX has enough to cover all client holdings. We do not invest client assets (even in Treasuries). We are processing all withdrawals, and will continue to do so.”

Since Monday, some FTX users shared that they are facing delays in withdrawals. Bankman-Fried assured users that everything is going smoothly with the matching engine, although the node throughput for bitcoin withdrawals is limited.

“BTC withdrawals: churning through them; node throughput is limited. We are turning this into a process from both ends, which should help speed it up,” he said.

He also addressed the issue of stablecoin withdrawals, claiming that USD stablecoin redemptions are slow over the weekend as banks are closed.

Concerns grew when it was revealed that the balance sheet of FTX affiliate Alameda Research was filled with the exchange’s native exchange token FTT.

Following this, Binance CEO Changpeng Zhao announced that the exchange, which also owned a large number of FTT tokens, had decided to liquidate any remaining FTT on its books.

“We will try to do this in a way that minimizes market impact. Due to market conditions and limited liquidity, we expect this to take a few months to complete,” CZ said. Binance holds approximately 23 million FTX tokens, which are valued at around $529 million.

The news has negatively affected the FTT token, which is down by over 20% in the past days. The coin is currently trading at around $18, which is 80% lower than its all-time high of $84.18 recorded in early September 2021.

In addition, there has been an increase in the flight of capital from FTX amid growing concerns about its troubles. According to data shared by crypto analyst Dylan LeClaire, over $450 million in funds have been withdrawn from the exchange in the past 24 hours.

Meanwhile, Binance co-founder and chief customer service officer Yi He has highlighted that the FTT sale has nothing to do with the alleged “war” between the two exchanges, but is purely investment-oriented. is related.

“Our decision to sell FTT is a purely investment-related exit decision, has nothing to do with “war” and we have no intention of engaging in drama,” she said. Told,

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