FTX CEO Sam Bankman-Fried Speaks Out Amid Binance Drama – Denies Insolvency, Says Withdrawals Will Continue
FTX CEO Sam Bankman-Fried has denied insolvency rumors amid mounting speculations that his exchange is facing liquidity issues, as evident by Binance's move to dump all its FTT holdings.
In a series of tweets on Monday, Bankman-Fried referred to the speculation as FUD, claiming that a "competitor" is responsible for manipulating public opinion about the company.
"FTX is fine. Assets are fine," he said. "FTX has enough to cover all client holdings. We don't invest client assets (even in Treasurys). We have been processing all withdrawals, and will continue to be."
Starting Monday, some FTX users shared that they are facing withdrawal delays. Bankman-Fried assured users that everything is running smoothly with the matching engine, although node throughput remains limited for Bitcoin withdrawals.
"BTC withdrawals: churning through them; node is throughput limited. We're switching it to process from both ends, which should help speed it up," he said.
He also addressed stablecoin withdrawal issues, claiming that USD stablecoin redemptions are slower over the weekend because banks are closed.
The concerns grew after it was revealed that the balance sheet of FTX's sister company Alameda Research was loaded with the exchange's native exchange token FTT.
Subsequently, Binance CEO Changpeng Zhao announced that the exchange, which was also the owner of a sizable number of FTT tokens, has decided to liquidate any remaining FTT on its books.
"We will try to do so in a way that minimizes market impact. Due to market conditions and limited liquidity, we expect this will take a few months to complete," CZ said. Binance holds about 23 million FTX tokens, worth about $529 million.
The news has negatively impacted the FTT token, which is down
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