Sam Bankman-Fried Amid FTT Debacle: FTX Has Over $1 Billion Excess Cash, Client Assets Are Safe

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Summary:

  • FTX CEO Sam Bankman-Fried reaffirmed that the crypto exchange is not insolvent despite rumors.
  • Speculations arose after Binance CEO Chanpgeng Zhao tweeted that the leading exchange will exit its positions for FTT, the native token of FTX.
  • SBF tweeted on Monday that his crypto exchange and client assets are fine.

Sam Bankman-Fried tweeted on Monday to assure FTX users that their funds and the crypto exchange remain out of immediate financial constraints following an announcement from Binance boss Changpeng Zhao selling about FTT.

CZ’s tweet revealing Binance’s decision to exit the FTX utility token dubbed FTT has seemingly stirred a hornet’s nest, with FUD flooding social media and speculation arising that SBF’s crypto exchange might battle financial difficulties soon. 

“A competitor is trying to go after us with false rumors.” said Bankman-Fried in his opening tweet

SBF further responded to the news by saying that “FTX is fine” and extended the same remark to user funds on the crypto exchange. The Bahamas-based billionaire added that the digital asset exchange continues to process client withdrawals regardless of delays that emerged.

2) FTX has enough to cover all client holdings.

We don’t invest client assets (even in treasuries).

We have been processing all withdrawals, and will continue to be.

Some details on withdrawal speed: https://t.co/tSjhJW3JlI

(banks and nodes can be slow)

Monday’s thread hinted that regulations and ongoing holdings audits might also contribute to delayed withdrawals. SBF stressed that the company has more than $1 billion in excess cash. The FTX CEO tweeted that he hopes to “work together for the ecosystem.” with CZ and Binance.

4) I’d love it, @cz_binance, if we could work together for the ecosystem.

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