Nov. 10 (UPI) — Withdrawals from FTX are open again after being shut down for two days as the struggling cryptocurrency exchange looks for its next move.
Investors were unable to withdraw funds Tuesday and Wednesday while the company faced a potential ownership change and liquidation. Rival Binance announced intentions to purchase the company over the weekend before ultimately pulling the plug on the deal Wednesday.
FTX founder Sam Bankman-Fried faced a cash shortfall in the face of liquidation, causing a level of panic for the company and traders alike.
Withdrawals resumed Thursday, though investors are urged to “Please close down any positions you want to close down,” by a message on FTX.
“Trading may be halted on FTX US in a few days,” the message says.
Bankman-Fried, viewed as an investment mogul just months ago, is scrambling to find a bailout. On Sunday alone, investors withdrew $5 billion, he said in a tweet. He said his focus at the moment is doing right by FTX users by taking measures to raise liquidity. He notes the next week will be critical for the company’s future. He clarified that the turmoil impacts FTX International specifically and not FTX U.S.
He also announced he is closing down Alameda Research, a trading firm he founded that works closely with FTX.
“I’m sorry. That’s the biggest thing. I (expletive) up, and should have done better,” he tweeted.
If FTX lives on, Bankman-Fried pledges its priority will be “radical transparency.” He commented that he regrets not communicating better with his user base.
Earlier this year, FTX was thriving, valued at about $32 billion. The cryptocurrency market has since fallen from grace with currencies losing value across the board. Since the announcement of Binance pulling out of its non-binding deal with FTX, Bitcoin fell to its lowest value in two years.
FTT, FTX’s currency, dropped by 80% from Monday to Tuesday, equaling a loss of about $2 billion. The value of one token fell to $5, then to $2.30 on Wednesday.
