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FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

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Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#92

Post by toomuchtodo »

kobalsky wrote: post #79
janmo wrote: post #24

Earlier quoted context omitted.

Well it has been 4 hours now, and the media has been reporting it for an hour, everyone on Twitter and Reddit is talking about it. Yet, no communication from FTX or SBF.

> Yet, no communication from FTX or SBF. this is the biggest issue. if they are having any kind of technical issues they should be on top of it. even if everything is fine by tomorrow and withdrawals are working again, this radio silence is unprofessional and at this point it feels like they are trying to avoid saying anything that will be held up in court against them.

Even strong denial can cause a run. See Credit Suisse as the most recent example.

https://www.google.com/search?q=credit+suisse+insolvent

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#95

Post by janmo »

bigdaddyrabbit2 wrote: post #48

Unlike traditional finance, all this is on-chain, so you can trivially look it up. https://etherscan.io/address/0x7abe0ce388281d2acf297cb089cae... FTX seems to be processing withdrawals normally. For the life of me, I can't understand why journalists love to speculate instead of doing a 5-second search on EtherScan.

SBF and CZ tweeted. https://twitter.com/cz_binance/status/1590013613586411520 https://twitter.com/SBF_FTX/status/1590012124864348160

Reading through the lines: FTX is in trouble and faces a "liquidity crunch", Binance might acquire them (But will do Due Dilligence first).

FTX US is not affected (SBF says funds are SAFU for FTX US, probably withdrawals are working for US but not FTX global)

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#96

Post by nova22033 »

https://twitter.com/cz_binance/status/1590013613586411520?s=...

From CZ This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#98

Post by djbebs »

joyfylbanana wrote: post #74
smoldesu wrote: post #63

Earlier quoted context omitted.

Let's break this down. If you're FTX, you don't have ATMs. You have a digital teller system that is leveraged against your own liquidity. If you fail to go liquid, one of the first things you'll stop doing is liquidating other people's transactions. This is a problem, because it creates an adversarial relationship between the currency-holders and the exchange managing their funds. Making matters worse, cryptocurrency…

I don't really get what you are talking about. Any sane custodial system has "hot" funds from where customers withdrawals are processed from. When the "hot wallet" drops too low, it is refilled from "cold storage" which is high security offline storage, and usually way slower to get funds out of because humans are involved in the process. If business is going as usual, customers don't see anything, because hot wallet…

How long should it take to get funds from a cold wallet to a hot wallet?

Hint: if it's more than 1 block (~10mins) you're either incompetent or fraudulent

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