He also urged other rival exchanges to do the same.
Also Read: Timeline: How FTX, the world’s second-largest crypto exchange, blew up
FTX, which filed for bankruptcy on Friday, was engulfed in more chaos on Saturday when it was hit by a mysterious outflow of about $662 million in tokens, the latest twist in one of the darkest periods for the crypto industry".
Also Read: E-nuggets scheme: ED freezes bitcoins worth ₹22.82 crore
"(Binance) has stopped FTT deposit, to prevent potential of questionable additional supplies affecting the market. We will monitor the situation," CEO Zhao said in a tweet.
"FTT contract deployers moved all remaining FTT supply worth $400 million, which should be unlocked in batches. Not too sure what's going on," he added, in another tweet.
Sam Bankman-Fried’s empire crumbled this week after a liquidity crunch at one of its affiliates. Its US exchange, FTX.US, said on Thursday that customers should close out any positions they want to and that trading may be halted in a few days. In the Bahamas, where FTX.com is based, authorities froze the assets of its local trading subsidiary and related parties. FTX was launched by Sam Bankman-Fried in 2019. Soon after the stable coin was backed by significant trading companies in the industry, including Almeda Research, OTPP, Temasek, BlackRock, Coinbase Ventures, and Sequoia Capital.
A couple of months ago, FTX seemed like a saviour for many illiquidity-suffered crypto exchanges. Bankman-Fried was known for his arbitrage trading and huge investments. FTX had even bailed out lending platform BlockFi in June when the crypto markets were struggling due to the Terra crash in May, Bankman-Fried was also among the bidders for Voyager's assets, and even contemplated bailing out Celsius.
(With inputs from agencies)
