Since Bahamas based cryptocurrency exchange; FTX collapsed, its problems have only continued to grow from bad to worse. From battling liquidity difficulties to its expropriation of funds and cryptocurrency assets deposited by its users, to its several unsuccessful attempts at acquisitions the exchange which is incorporated in Antigua and Barbuda has now had to officially file for bankruptcy. Its Chief Executive Officer (CEO); Sam Bankman-Fried who is more commonly known in the cryptocurrency space as SBF, has also had to resign.
On top of that, FTX has also experienced a hack. The administrators of its official Telegram medium made it known to users that its FTX website “might download Trojans”, which could have a severe negative impact on the portfolios of its users.
The hack also resulted in the exchange losing almost 600 million United States Dollars (which is around 73.2 billion Kenyan Shillings) just hours after it declared a Chapter 11 bankruptcy.
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Recent findings revealed that 196 million FTT Tokens were also released. The 342 million United States Dollar (which is around 41.8 billion Kenyan Shillings) worth of FTT Tokens that were released, resulted in popular cryptocurrency exchange; Binance pausing all FTX token deposits on its platform.
The newly set up wallet address received a total of 192 million FTT Tokens. With the current price of the token that would have put the total value at around 334 million United States Dollars (USD) which is around 40.75 billion Kenyan Shillings. The price of the FTT Token has fallen by 92.55 percent in the last thirty (30) days.
With the 192 million FTT Tokens starting to make their way into the open market Binance, moved to pause all deposits of the Token on its platform.
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The Co-Founder and Chief Executive Officer (CEO) of Binance; Changpeng Zhao who is more popularly known as CZ in the crypto space made it known via a recent tweet that, “FTT contract deployers moved all remaining FTT supply worth $400 million, which should be unlocked in batches. Not too sure what’s going on.”
The Billionaire also stated that, “If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems.”
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