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FTX Night News | 11/11 0-4 AM: $9.4 Billion Raised, Withdrawals for SUN Token, Temporary Withdrawals, Japan Shutdown, White House Alerted

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FTX Night News | 11/11 0-4 AM: $9.4 Billion Raised, Withdrawals for SUN Token, Temporary Withdrawals, Japan Shutdown, White House Alerted

FTX-related news keeps coming, stay tuned with these updates on the morning of 11/11!

From 11/11 midnight to 4 a.m.: FTX Turmoil Continues

SBF Vows: "I Will Work Hard to Raise Funds"

Shortly after 10 p.m. on 11/10, SBF released a lengthy statement titled "Latest Statement from SBF | Full Steam Ahead for Liquidity Next Week, Every Penny, Collateral Will Be Given to Users," in which he stated that the total market value of assets and collateral at FTX International currently exceeds user deposits. However, this is different from the liquidity that can be provided, as evidenced by the withdrawal situation you are seeing. We will do our utmost this weekend to obtain liquidity.

However, other events that occurred simultaneously include:

Suspected Withdrawal Turmoil

At 00:01, researchers at The Block found that multiple transactions were being sent out from FTX-owned addresses again, but it is still unclear whether withdrawals have begun for users. "On-chain activities suggest: FTX appears to have withdrawal activities, but many users are still waiting," however, many crypto celebrities have come out to question whether this is a normal withdrawal activity. By 3 a.m., Zane Tackett claimed on Twitter to be a "former FTX employee," but his LinkedIn profile still shows he is employed, with the title "Head of Institutional Sales at FTX." He stated:

"Due to the regulations and regulators at our Bahamas headquarters, we have started withdrawals of Bahamian funds. Therefore, you will see some withdrawals processed by FTX."

"The amount withdrawn only represents a small portion of our current assets, and we are actively developing other ways to provide withdrawals for our other users. We are also actively investigating what we can do for global users." FTX later issued a statement on this matter.

If it unfortunately leads to litigation, you can also refer to "FTX Disaster Victim Self-Rescue Guide Violent Edition | Various Paths to Claim Compensation from FTX International and FTX US."

Reuters: FTX Seeking $9.4 Billion Fundraising, Hit Hard

At 1:39, Reuters suddenly reported an exclusive news: according to sources, FTX is seeking a $9.4 billion rescue plan, with potential investors including Sun Yuchen, OKX, Tether, and other investment groups. It is alleged that American investor Daniel Loeb is also involved in investment negotiations.

However, Paolo Ardoino, CTO of Tether, immediately responded: "Tether has no plans for any investment or lending to FTX or Alameda." Daniel Loeb also quickly stated: "Fake news."

At 2:32, media outlet The Block reported that trading will be suspended in the coming days.

Conditional Withdrawal of TRON Tokens Opened

At 1:48, FTX officially announced "FTX Notice on Tron Credit Mechanism":

  • Holders of TRX, BTT, JST, SUN, and HT are allowed to exchange assets from FTX to external wallets at a 1:1 ratio. This feature will be enabled at 18:30 UTC on November 10, 2022.
  • The exact quota for Tron Tokens will be determined weekly, and future injection times will occur at 14:00 UTC. The recharge quota will be determined by factors such as withdrawal demand and funds that Tron can provide.
  • As part of this protocol, FTX will prohibit all users from using Tron for deposits during this period. The only deposits will be activities announced in advance by the Tron team on a weekly basis. $13,000,000 in assets will be deployed first to achieve this exchange.

SBF stated: Allowing withdrawals of TRON ecosystem tokens is the first step to bring back liquidity. Working hard to address liquidity issues.

White House Alerted, closely monitoring

At 03:19, CoinDesk quoted Karine Jean-Pierre, White House Press Secretary, as stating that the Biden administration is closely monitoring the developments at FTX.