FTT Crashes 9% Following Binance and Huobi Suspension of its Deposits

At least two crypto exchanges, Binance and Huobi, have blocked the deposits of FTT after 192 million tokens were released into circulation, contrary to the schedule.

FTT tokens are usually released in batches periodically by the token contract deployer. But on Sunday, the rest of the tokens were all released at once. 

Though the value of FTT has dropped significantly, the new tokens released were still worth over $400 million and further affected the coin’s value. It is now down by 9% in the last 24 hours.

Binance Stops FTT Deposits

Binance Chief Changpeng Zhao tweeted that the exchange was stopping all FTT deposits to prevent the new supplies from affecting the monitor. Zhao urged other exchanges to suspend the token.

In an effort to protect users, #Binance will remove and delist $FTT from the following products:

🔸 Simple Earn Flexible Products🔸 USDⓈ-M Perpetual contracts🔸 Cross Margin🔸 Isolated Margin

View settlement and delisting times here ⤵️https://t.co/bShwKCWwhM

— Binance (@binance) November 13, 2022

Binance further stated that it was removing the struggling token from several of its products to protect users.

Some exchanges have heeded CZ’s advice as Justin Sun tweeted that Huobi Global was stopping deposits for the token and will monitor the situation. 

FTX was yet to comment on the situation, adding further drama to the several controversies it is already embroiled in.

Updates on FTX Situation

The exchange has been at the center of a liquidity storm that started at the beginning of last week before filing for bankruptcy on Nov. 11.

On Nov. 12, over $400 million was withdrawn from FTX wallets in what some officials of the exchange claim to be a hack. 

However, many in the crypto community believe it was an insider job and might have been executed by Sam Bankman-Fried or those close to him.

A Reuters report stated that SBF had a backdoor built into the FTX compliance and bookkeeping system. According to the report, he used this backdoor to change the financial records of the exchange without alerting other key employees in charge of compliance.

The report noted that the backdoor allowed SBF to lend Alameda Research $10 billion of users funds without triggering any compliance alerts.

SBF denied this in text messages to Reuters, saying that the funds were not secretly transferred and were due to internal mislabeling.

Kraken has spoken with law enforcement regarding a handful of accounts owned by the bankrupt FTX Group, Alameda Research and their executives. Those accounts have been frozen to protect their creditors.

Other Kraken clients are not affected. Kraken maintains full reserves.

— Kraken Exchange (@krakenfx) November 13, 2022

Meanwhile, Kraken has revealed that the identity of the FTX hacker is known and it is now working with law enforcement to bring the unnamed individual to book.

In a separate development, Bahamas authorities also denied authorizing the exchange to process withdrawals as it had claimed initially.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

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