The developments for FTX, one of the major cryptocurrency exchanges, do not end. Most recently, the process of withdrawing funds from the stock market was in trouble amid allegations of FTX’s bankruptcy. Some investors were aggrieved as the stock market experienced a liquidity crisis. A statement came from TRON founder Justin Sun on this issue. Here are the details…
TRON inventor Sun addresses FTX victims
Justin Sun pointed to the liquidity crisis in FTX and stated that they will do whatever is necessary to protect investors. In the event that users with TRX, BTT, JST, SUN and HT tokens belonging to the TRON ecosystem on the FTX exchange cannot withdraw their money; He stated that they will meet the coins at a ratio of 1:1. This was announced on Huobi’s website as well. As we reported as Kriptokoin.com, Sun had participated in Huobi in the past weeks.
Latest situation in FTX: What happened?
The events surrounding the FTX and Binance drama went viral yesterday. With the bankruptcy of FTX, the world’s second largest exchange and one of the so-called flagships of the industry, the crypto market has seen one of its darkest days in its recent history. Although Binance signed a non-binding letter of intent (LOI) yesterday to fully acquire FTX, there are still great doubts on all sides as to whether the deal will actually be made. This uncertainty surrounding the bankruptcy of FTX and Alameda is currently weighing on the market.
Underneath the uncertainty lies the lack of disclosure of the terms of the agreement. Also, Binance CEO “CZ” said that he can withdraw from the deal at any time and should do due diligence before the deal is finalized. A letter to investors from FTX CEO Sam Bankman-Fried (“SBF”) also expresses this uncertainty. In the letter, SBF apologizes for the lack of communication regarding the deal with Binance. In addition, SBF emphasizes that it has reached a “non-binding agreement on the purchase of FTX” with CZ. Twice, the CEO of FTX emphasizes that “first priority” is to protect customers and the industry.
SBF’s last sentence could set the tone and points to more uncertainty for client funds. “I’m sorry I couldn’t do better and I will do my best to protect client assets and your investment,” he says. The email comes after FTX went through a major run on the exchange that resulted in withdrawals being halted on Tuesday. According to SBF’s latest statements, the exchange is currently working to clear backlogs in terms of withdrawals.