Withdrawals eclipsed deposits on crypto exchanges like Coinbase, FTX-backed KuCoin, Gateio, and OKX to name a few. Crypto Twitter called out Crypto.com and Gateio for “lack of transparency” after ETH transactions between the platforms caused a stir.
Gateio has since published proof of reserves including liabilities along with crypto exchanges like Kraken.
CEXs Like Binance See Inflows While FTX Saga Unfolds
Indeed, Nansen’s data suggests that customer confidence in CEXs might not be completely shattered considering FTX’s bankruptcy. The failure of the major exchange shook the industry and left crypto users without access to billions in digital assets.
FTX collapsed a few months after Terra’s $40 billion implosion crippled centralized crypto startups like BlockFi, Celsius, Three Arrows Capital, and Voyager Digital. At the time, Sam Bankman-Fried offered loans and lifelines to BlockFi and Voyager Digital in a so-called attempt to bail out crypto markets.
Contagion from SBF’s alleged fraud and the fallout from FTX’s portfolio has not unraveled completely, the general sentiment on CT suggests. The chapter 11 bankruptcy filed in Delaware mentioned 130 companies linked to FTX and Alameda.
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