Two hours without withdrawals puts FTX’s liquidity in question
FTX hasn't processed any transactions on the Ethereum blockchain in over two hours, sparking rumors of insolvency.
On-chain data has shown that FTX has stopped processing withdrawals for around two hours.
According to data analyzed by CryptoSlate, the last outgoing transaction from FTX on Ethereum was recorded at around 6:18 a.m. EST. Etherscan showed no outgoing transaction from FTX’s address since then, further fueling rumors about the exchange’s liquidity position.
Solana and Tron explorers showed an uninterrupted stream of outgoing transactions, leading some to speculate whether this was a technical issue.
However, the exchange has been facing an unprecedented liquidity crisis. A report from Nansen showed that $1.2 billion in crypto has been withdrawn from FTX in the past 24 hours, with only $540 million in various tokens deposited. With a negative net flow of -$653 million and withdrawal pressure continuing to mount, the exchange is up for a difficult quarter.
24H total deposits to FTX: $540M
Total withdrawals: $1.2B
— Nansen 🧭 (@nansen_ai) November 8, 2022
As previously covered by CryptoSlate, the amount of BTC held on the exchange had gone negative as around 20,175 BTC left the exchange in the past 24 hours.