Onchain Data Shows ETH Withdrawals Paused For 2 Hours By FTX US
West Realm Shires Services, the parent company of FTX International, filed for Chapter 11 bankruptcy in Delaware and users realized that the bankruptcy filings also included the name of FTX US.
The website of the US exchange says that trading might be halted on the platform for a couple of days, but transaction processing of the Ethereum wallet of the company stopped for a while on Friday morning.
The withdrawals stopped at 12:20 p.m., but people were able to withdraw ERC20 and Ethereum again two hours later at 2:15 p.m.
FTX International’s parent company, West Real Shires Services, made the announcement of the bankruptcy filing on Friday morning at 9:14 p.m.
It said that the company itself, along with Alameda Research and about 130 companies affiliated with it were all filing for Chapter 11 bankruptcy protection.
A day earlier, Sam Bankman-Fried, the CEO of FTX, had said that the issues were with FTX International and not FTX US because it was a separate entity.
Yet, the American subsidiary was also named in the bankruptcy filings. They show that the liabilities of Alameda and FTX are between the range of $10 billion and $50 billion.
Users were extremely unhappy to see that FTX US had also been included in the bankruptcy filings, even though SBF had said otherwise a day earlier.
In addition, the web portal of FTX US also announced that trading could come to a halt in a few days. The update informed users to close any positions they wanted.
However, it reassured them that withdrawals would stay open and they would continue to share updates as they receive them.
But, the onchain data showed the opposite, as the Ethereum wallet on the exchange did stop processing transactions on Friday afternoon
The address had been processing transactions before they stopped at 12:20 p.m. The last transaction that occurred was a withdrawal of 5,200,000 SHIB.
Blockchain explorer data showed that withdrawals had been paused for about two hours, as they resumed at about 2:15 p.m.
According to the FTX website, withdrawals would remain open, but there had not been any onchain movement during this time.
Before the last onchain transaction occurred, FTX International had mentioned on November 10th at 11:29 p.m. that Ethereum withdrawals on the FTX US would resume shortly.
The main website or the Twitter account of FTX US did not mention any problem with withdrawals on the platform.
Yet, there have been complaints from users about withdrawals on the platform since November 8th. A user said that their request had been stuck for 6 hours.
Another individual said on Friday that they were getting an error message when they tried to make a withdrawal.
The user also added that they could not find any instance of the error message, even though they were trying via the website.