FTX CEO Sam Bankman-Fried tweeted on Monday, stating that “FTX is doing well. Assets are doing well.”

“FTX has enough to cover all customer holdings. We do not invest in customer assets (not even Treasuries). We have been processing all withdrawals and will continue to do so,” Bankman-Fried said on his Twitter, trying to build confidence. towards its investors as speculation mounted over the weekend about the solvency of billionaire Bankman-Fried’s crypto exchange FTX.

The CEO made a move after revealing the health of FTX’s balance sheet, a warning he learned from the Terra Luna collapse.

On Monday, Binance CEO Changpeng Zhao surprised the crypto community with the exchange move to liquidate its holdings of FTX cryptocurrency FTT, a rival to Binance’s much larger BNB stablecoin. Blockchain.News reported on the matter.

While CZ did not specify the value of the FTT cryptocurrency it planned to download, it did confirm via Twitter that nearly $600 million worth of FTT was transferred from a wallet to Binance’s exchange as “part of” Binance’s FTT exit.

CZ posted on Twitter on Sunday that liquidating FTT is just post-exit risk management, learning from the moon. CZ said: “Due to market conditions and limited liquidity, we expect [the sale of Binance’s FTT] it will take a few months to complete,” adding that the sale would be done in a way that “minimizes the impact on the market.”

Following its collapse, Celsius has been accused of artificially inflating its balance sheet by manipulating the price of its cel cryptocurrency.

Last week, crypto blog Dirty Bubble Media drew parallels between Sam Bankman-Fried’s trading company Alameda Research and bankrupt crypto lender Celsius after media reports alleged that FTX is using Alameda’s balance sheet to boost its native token, FTT.

Yesterday, Caroline Ellison, CEO of Alameda, responded to CZ’s suggestions and told him that if he’s looking to minimize the impact of the market on his FTT sales, then Alameda would happily buy it all for $22. Ellison later posted that Alameda’s reported balance sheet is “for a subset of our corporate entities,” and the company has more than “$10 billion in assets that are not reflected there.”

Crypto Community Raises Concerns

The drama has caused anxiety among members of the crypto community who fear the industry will be hit hard by another Terra Luna crash or a Celsius-style meltdown after stablecoin reserves on the exchange fell significantly in the last 24 hours. .

Yesterday, data from CryptoQuant indicated that the FTX stablecoin’s reserve currently stands at $107 million, an improvement after falling 93% in the past two weeks to $51 million earlier.

The reserve increase was due to Alameda Research sending stablecoins from Circle and other exchanges to FTX. Alameda is a cryptocurrency trading company owned by FTX founder Sam Bankman-Fried.

On-chain analyst Lookonchain also stated that Alameda withdrew $487 million USDC from Circle and transferred it to the FTX exchange since November 3. He also withdrew more than $197 million USDC from Circle after CEO Caroline Ellison said the trading firm was open to buying Binance. FTT for $22 each.

Furthermore, Chinese crypto reporter Colin Wu reported that companies like Jump crypto and nexus had made large amounts of FTX withdrawals in the last 24 hours.

Lookonchain reported that such a wave of withdrawals has caused the value of FTX’s hot wallet to drop to $1.8 billion from $2.4 billion in the last 24 hours.

Crypto influencer and founder of crypto jokes Ran Neuner also advised his followers to withdraw their funds from FTX and noted that he has nothing against the exchange. Ben Armstrong (BitBoy Crypto) also urged people to close their FTX accounts without saying the exchange was insolvent.

But Gabriel Shapiro, the general counsel for blockchain researcher Delphi Labs, tweeted that [It] It seems that people want FTX to be insolvent and are trying to cause a bank run. [It] would be another important policy [and] regulatory black eye for the industry, isn’t it?” Bankman-Fried, meanwhile, has emphasized that all is well with the FTX exchange. He tweeted that the exchange had already processed billions of dollars in deposits/withdrawals yesterday and said that would continue to do so. So. He added that the exchange would welcome back users who have withdrawn their funds when all this is over.

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