FTT has crashed by roughly 9% following Binance & Huobi decision to suspend its deposits

A minimum of two cryptocurrency exchanges, Binance and Huobi, have suspended FTT deposits after 192 million tokens were distributed in violation of the planned distribution schedule. The token contract deployer often releases FTT tokens in batches on irregular schedules. However, all of the remaining tokens were released at once on Sunday.

FTT Crashes 9% Following Binance and Huobi Suspension of its Deposits

Even though FTT’s value has considerably decreased, the newly released tokens were still valued at more than $400 million, which further impacted the coin’s value. Now, it has decreased by 9% over the past 24 hours.

Changpeng Zhao, the CEO of Binance, announced through Twitter that all FTT deposits were being suspended to prevent the monitor from being impacted by the fresh supplies. Zhao pleaded with other exchanges to put the token on hold.

Binance further stated that it removed the struggling token from several of its products to protect users. Some exchanges have heeded CZ’s advice, as Justin Sun tweeted that Huobi Global was stopping deposits for the token and will monitor the situation.

FTX has already been involved in several scandals, but as of this writing, it has not responded to the situation. Before declaring bankruptcy on November 11, the exchange was at the epicenter of a liquidity crisis that began at the beginning of last week. On November 12, nearly $400 million was taken out of FTX wallets in what some exchange executives call a hack.

However, many people in the cryptocurrency industry think it was an inside job, possibly carried out by Sam Bankman-Fried or those close to him.

According to a Reuters article, SBF had a backdoor in the FTX bookkeeping and compliance system. He allegedly utilized this backdoor to alter the exchange’s financial records without informing other important workers in charge of compliance. According to the study, SBF could lend $10 billion in user cash to Alameda Research using a backdoor without raising compliance alarms.

SBF denied this in text messages to Reuters, saying that the funds were not secretly transferred and were due to internal mislabeling.

Meanwhile, Kraken has revealed that the identity of the FTX hacker is known, and it is now working with law enforcement to bring the unnamed individual to the book. In a separate development, Bahamas authorities also denied authorizing the exchange to process withdrawals as it had claimed initially.

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