FTX NFT market is in use! A Bahamian user sold NFTs to assist in capital flight, and the minting function is currently disabled.
Crypto personality Cobie discovered that his Bahamian account was being used to help others withdraw funds through NFTs to circumvent FTX's current restriction on internal transfers among users. However, as of the deadline, the NFT market has been suspended for deposits and NFT minting.
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FTX NFT Market Facilitates Capital Flight
Previously, FTX allowed users to transfer assets internally, and many users would sell their on-platform assets to others through over-the-counter trading at a significant discount. However, after the internal transfer function was banned, a new method has emerged, albeit with risks.
Crypto celebrity Cobie stated that these Bahamian accounts create NFTs in FTX's NFT market and offer them for purchase to users whose funds are stuck, facilitating capital flight.
Apparently this is a Bahamas account withdrawing other people's funds for them.
They are likely bypassing the internal balance transfers block by selling NFTs on FTX's NFT marketplace — eg. Bahamas account creates an NFT, the stuck user buys the NFT with their full balance. https://t.co/VphzwQprdQ
— Cobie (@cobie) November 11, 2022
Using the following NFT as an example, transactions exceeding five million dollars in total have occurred:
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