FTX withdrawals: How to access frozen funds in SBF’s stricken exchange amid severe liquidity squeeze
Updated
The embattled cryptocurrency platform FTX resumed processing limited withdrawals for several hours on Thursday, on-chain data, published by cryptocurrency intelligence platform Arkham Intelligence, showed.
However, only FTX users registered in the Bahamas - where the company is headquartered - were able to make withdrawals, FTX later said via Twitter.
A couple of hours later, the Bahamas securities regulator froze the assets of FTX Digital Markets Ltd. The watchdog also added it suspended FTX registration and applied to the Supreme Court of The Bahamas for the appointment of a provisional liquidator FTX Digital Markets Ltd.
On Friday, the FTX Group said in a statement that FTX, its affiliated trading fund Alameda Research, and 134 other companies have commenced voluntary Chapter 11 bankruptcy proceedings in Delaware. FTX founder and CEO Sam Bankman-Fried has resigned from his role.
FTX token (FTT)
The news was first reported by a crypto intelligence platform Arkham Intelligence.
“FTX appears to be processing withdrawals – in a limited capacity as of right now $2.61m in $ETH transferred out in the last 10 minutes,” tweeted Arkham at 15:50 UTC with a screenshot showing the transcations.
FTX appears to be processing withdrawals - in a limited capacity as of right now
— Arkham | Crypto Intelligence (@ArkhamIntel) November 10, 2022
$2.61 million in $ETH transferred out in the last 10 minutes???????? pic.twitter.com/yJHlO3UqKP
‘Try your luck. See if you can get out’
Following Arkham’s alert, other crypto market watchers recommended FTX clients should try to withdraw their funds.
“FTX are processing withdrawals of various different sizes. If you have money stuck, try your luck and see if you can get out. God speed,” tweeted Aylo 16:53 UTC.
However, others reported that their withdrawals were still pending. “I’ve had withdrawals pending. And tried new ones. Nothings happening. Anyone had any luck?” asked Twitter user Mayne.
After hours of silence from the FTX on the sudden resuming withdrawals, FTX published the following statement: “Per our Bahamian HQ's regulation and regulators, we have begun to facilitate withdrawals of Bahamian funds. As such, you may have seen some withdrawals processed by FTX recently as we complied with the regulators.”
But only a couple of hours later, The Bahamas Securities Commission froze all assets of FTX local subsidiary, FTX Digital Markets “and related parties.”
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