Crypto ExchangesGlobal NewsTokenization Alert: Mass of Transactions Leave Wallets

A mass of withdrawals have been processed for wallets associated with the platform, prompting fears of another FTX-style bank run.

In the last few hours, more than 89,000 withdrawals of varying sizes have been processed from the transaction account. A quick look at one of the main wallets of on the Ethereum blockchain explorer Etherscan paints a concerning picture of investor sentiment towards the exchange.

This unusually high transaction data comes hot on the heels of the world’s fourth largest cryptocurrency exchange FTX, filing for bankruptcy after “misusing” its customer’s funds to the tune of roughly US$8 billion.

On Saturday, some doubts were raised about the legitimacy of the reserves of, after it was revealed that the Singapore-based crypto exchange “accidentally” sent 320,000 ETH (US$400 million) to rival exchange This has led many critics to accuse and of “sharing” funds to post stronger-looking ‘Proof of Reserve’ statements.’s CEO Kris Marszalek clarified over Twitter that the transaction was as an “accident”. Kris went on to say that the funds were intended to be sent to an offline cold storage crypto wallet, but mistakenly went to, another crypto exchange.

According to data from the blockchain analysis firm Nansen, currently have around US$2.5 billion in reserve on the platform, with more than 20% of that number being comprised by Shiba Inu token (SHIB).

A recent Twitter thread from popular pseudonymous user ‘0xfoobar’ highlights some further inconsistencies with transfers from the platform over the past few weeks.

There seems to be a high volume of suspicious activity which suggests that may been using customer funds to support its own trading activity, which is very similar to bankrupt cryptocurrency exchange FTX.

At the time of writing the native token of the platform, CRO has plunged more than 50% over the past 3 days, following increased suspicion of the financial health of the platform.

The situation is still developing by the day.

The Chainsaw

News Desk

Unlock News Desk, is a group of Blockchain and Crypto enthusiastic young people, working to keep Unlock readers up to date with the industry news. Connect with the team via email: info(@)

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