Concerns About After FTX Bankruptcy: Is Crypto Exchange Faltering?

Hardly digested the shock of FTX, the next thriller is on the horizon around It’s not just a random $400 million transaction that raises questions. The transfer of $260 million of stablecoins just before revealed its reserves also raises doubts about the crypto exchange’s liquidity. The official side appeases.

In response to the FTX crash, along with Binance, also announced it disclose their reserves. CEO Kris Marszalek spoke of “complete transparency”. It should be “required for crypto platforms to share proof of reserves publicly”. According to Lookonchain however, there is a need for clarification.

Therefore, has assets worth about 2.7 billion US dollars. According to the blockchain analysts, 20 percent of this consists of Shiba Inu tokens: $531 million. After bitcoin ($857 million), memecoin occupies the largest position in reserves ahead of ether ($446 million).

In addition, there is a not insignificant share of the company’s own exchange token Cronos (CRO). The exchange is said to have around 1.2 billion CRO tokens (80 million US dollars) as reserves. According to Lookonchain, around 40 percent of the reserves consist of “low liquidity assets” – assets that only guarantee low liquidity.

Report raises questions is also said to have transferred $260 million worth of stablecoins, possibly to increase its own reserves. “We found that drained a total of $210 million in USDT from Binance and $50 million in USDC from Circle,” according to Lookonchain. The money was transferred shortly before CEO Kris Marszalek announced the disclosure of the reserves. A timing that Lookonchain is “very strange”.

Therefore, the blockchain analysts advise investors: “If you have funds on, please take care of the security of your funds”. Similar said Binance CEO Changpeng Zhao: “If an exchange has to move large amounts of cryptocurrency before or after they list their wallet addresses, that’s a clear sign of trouble. Stay away”.

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Transferred $400 million by accident?

Wallet movement tracking also revealed that sent 320,000 ether, equivalent to $400 million, to rival trading platform as early as October 21. Apparently by accident: “It was supposed to be moved to a new cold storage address, but was sent to an external central address,” says Marszalek. According to its own statements, accidentally sent 80 percent of its entire ETH reserves.

The transfer happened just before announced its own reserves. The stock exchange according to but the ethers were not part of the report. On October 29, transferred the $456 million back to

“All ETH was successfully withdrawn from and returned to our cold storage,” Marszalek wrote on Twitter. “We have since improved our processes and systems to better manage these internal transfers.”

It wouldn’t be the crypto exchange’s first accidental transfer. After an Australian woman requested a $100 refund, she was paid $10 million by Instead of the amount of money, the account number is said to have been entered into the computer system. The incident was not noticed until seven months after the transfer.

Against the backdrop of the FTX bankruptcy, however, the latest bad transaction took on a different dynamic. Rumors that is in financial distress rise as investors pull their assets from the exchange over the weekend rose sharply.

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