After a brief delay, FTX US will shortly begin Ethereum [ETH] and Polygon withdrawals, asking MATIC users to cancel their pending withdrawals and initiate a fresh request.
Earlier, FTX US alerted users that trading may be suspended on its platform 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.”
Sam Bankman-Fried, the company’s founder and CEO, tweeted about his plans to rescue the troubled firm, insisting that FTX US is a different entity from its global business and is doing just well. “FTX US was 100% liquid and not affected “by this shitshow. Every user could fully withdraw.”
This is in contrast to FTX International, the global crypto trading company that’s currently seeking funding to fill a reported $10 billion deficit.
Although FTX US has been described as a separate entity from the global operation, the two businesses are in reality closely related.
This is because the FTX brand as a whole has been frequently utilized in sponsorship agreements in the US, for instance, and some of those deals have specifically been made with both FTX and FTX US.
Additionally, a report from Bloomberg on 9 Nov. stated that the U.S. Securities and Exchange Commission [SEC] and Commodity Futures Trading Commission [CFTC] is investigating FTX, its handling of customer funds, and the degree of closeness between the two entities.
The situation became even more problematic when Bankman-Fried allegedly leaked Slack messages in his public tweets indicating prospective fundraising that would inject money into both FTX and FTX US at the same time.
Meanwhile, the price of Bitcoin and Ethereum has fallen significantly over the previous 24 hours, resulting in a 10.6% decline in the overall market capitalization of cryptocurrencies, which now stood at $914 billion.
Ethereum Trading At Premium Range On FTX
Data showed Ethereum‘s price has dropped 8% in the previous 24 hours and is currently hovering at $1,274. As a result, the market value of the second-largest cryptocurrency has decreased by 74% from its previous peak.
Compared to Binance and other platforms, ETH was fetching greater prices on FTX. as traders are perplexed by the peculiar market dynamic. According to data from the graphing tool TradingView, ether traded at a premium of $1307 on FTX.