Sam Bankman-Fried, the founder of one the world’s biggest crypto exchange platforms, FTX, tweeted to his followers that a competitor was spreading rumors about FTX. He assured everyone that the company’s assets were fine and there was no cause for worry.
Sam Bankman-Fried Assures That FTX Is Fine
Crypto markets have been turbulent recently, following news of tensions between two of the richest people in the industry. FTX’s CEO Sam Bankman-Fried emphasized that his crypto exchange remains fine, despite the fact that rival Binance offloads FTX tokens after recent revelations. A leaked balance sheet from Alameda Research, a trading firm also founded by Sam Bankman-Fried, allegedly billions of dollars worth of Alameda’s assets are tied up in FTX’s token which was reviewed by CoinDesk.
Bankman-Fried has dismissed concerns about the company’s balance sheet, calling them “false rumors.” Caroline Ellison, CEO of Alameda Research, asserted that the group has over $10 billion in assets not included in recent leaked numbers.
Bankman-Fried further reassures that assets are intact and have enough to cover all client holdings. He stated that they do not invest their clients’ funds even in treasuries and there is no risk of withdrawals being halted as clients can continue to withdraw their funds as usual. Adding FTX is a highly regulated company with over $1 billion in excess cash and has a proven history of safeguarding client assets. He concluded his tweet thread with a suggestion for Binance’s Changpeng Zhao to work together for the sake of the cryptocurrency ecosystem.
Current FTX Fiasco At The Crypto Market
The market’s concern about FTX’s liquidity has grown as Binance adds selling pressure and the exchange has seen massive outflow. According to Nansen data, $451 million was sent off the exchange’s main platform during the last week, and $15 million was pulled from its U.S. subsidiary. As a leaked balance sheet emerged, FTT lost significant millions in market capitalization as traders sold off their holdings. The token is currently trading at $15.61 and has fallen 29.51% in the past 24 hours. The fiasco also spilled across the crypto market as Bitcoin (BTC) is down to $19,703.20.