Founder Sam Bankman-Fried has insisted that his cryptocurrency exchange FTX US is insulated from the ongoing liquidity crunch of the international FTX.com — however, the American-based platform could freeze trading in the next few days.
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Fast facts
- In a statement on FTX US’s trading page Thursday, the company announced: “Trading may be halted on FTX US in a few days. Please close down any positions you want to close down. Withdrawals are and will remain open. We will give updates as we have them.”
- Though FTX.com and FTX.US are considered different entities, there is increasing investor fear over the shared risk of Bankman-Fried’s separate businesses following the simultaneous collapse of his crypto trading firm Alameda Research and FTX.com.
- SBF stated that “FTX US USERS ARE FINE!” in his series of apologetic tweets about the FTX’s liquidity crunch on Thursday. New signups on FTX US’s website are currently paused.
- FTX US Derivatives, formerly LedgerX before acquired by FTX US last year, also assured investors that their assets are safe, adding that the company will “soon be entirely separate” from FTX.com in a statement shared by CEO Zach Dexter.
- However, according to Bloomberg, the company may be liquidating some of its assets ahead of a potential wave of withdrawals from the platform.
- Employees are reportedly in talks about selling parts of the business, including stock-clearing platform Embed and naming rights to a sports arena in Miami, according to the news outlet’s anonymous sources.
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