Nearly $1B Moved Out of FTX, As A Single Whale Withdraws $247M+ Amidst Insolvency Concerns PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Nearly $1B Moved Out of FTX, As A Single Whale Withdraws $247M+ Amidst Insolvency Concerns

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FTX has witnessed nearly $1B in outflows in the past week, with a whale withdrawing over $247M within a day as insolvency concerns gain steam amidst exchange’s clash with Binance.

FTX is experiencing a wave of bank runs, with $955M+ in outflows noticed in the past 7 days, and $487M+ withdrawn from the exchange within the past 48 hours. Additionally, a single whale appears to have withdrawn USDC and USDT worth $245M+ in a series of transactions within 24 hours.

The recent development has been highlighted by several sources within the cryptocurrency space, as tensions from Sam Bankman-Fried’s clash on Twitter with Binance’s CZ get more heated. 

“Nearly $1B in capital has fled from FTX in the last week. If you hear a rumor (sic), always run first and ask questions later,” notable crypto writer Alpha reported through a tweet on Tuesday. 

Details of the Transaction

They further shared a dashboard which highlights FTX Bank Run Counter. Data from the counter revealed that the platform has witnessed outflows worth $487M+ within two days, with $955M+ withdrawn from the exchange in the past week. The outflows were recorded from known Alameda and FTX accounts, Alpha said.

Furthermore, blockchain surveillance platform Lookonchain revealed that a single whale recently withdrew $245M+ worth of USDC and USDT in the past 24 hours in a series of transactions. The whale moved out 129.8M worth of USDC and 115.9M worth of USDT. 

“A giant whale is worried about “bank run” on FTX and withdrawing USDC/USDT from #FTX Exchange. He withdrew 129.8M $USDC and 115.9M $USDT from #FTX Exchange in the past 24 hours. As soon as #FTX opens the withdrawal, he immediately withdraws stablecoins from #FTX,” Lookonchain disclosed in a tweet.

Reason Behind the Move

This sudden spike in outflows is suggestive of the magnitude of Fear Uncertainty and Doubt (FUD) the SBF’s current clash with Binance’s CZ has pumped into the space. Following the numerous debacles triggered by the Terra clash which caused investor losses to the tune of tens of billions, the crypto community has become rather alert to insolvency concerns.

Recall that CZ disclosed that Binance will be liquidating its FTT holdings as a “post-exit risk management” move as he refers to the issues experienced with the Terra collapse as a lesson to be learnt. The disclosure has birthed an exchange of words between CZ and SBF, leading to a mass withdrawal of funds from FTX as investors look to hedge against insolvency.

As these outflows persist, Crypto Rand pointed out that the BTC balance on FTX exchange has reached the negative territory, with a current BTC balance of -197, following a 24-hour change of -20,175. Additionally, The Crypto Basic highlighted a recent decline of BTC Reserve on exchanges, as reserves hit 4.5-year lows. 

Notwithstanding, it appears certain investors are trooping to Binance as they ditch FTX. Chinese blockchain reporter Colin Wu noted that about 20% of the inflows Binance has seen in the past 7 days appear to be coming from FTX. The total assets are valued at about $1.17B. 

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  • Source: https://thecryptobasic.com/2022/11/08/nearly-1b-moved-out-of-ftx-as-a-single-whale-withdraws-247m-amidst-insolvency-concerns/?utm_source=rss&utm_medium=rss&utm_campaign=nearly-1b-moved-out-of-ftx-as-a-single-whale-withdraws-247m-amidst-insolvency-concerns

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