Binance and Huobi block FTX token deposits after detecting irregular release

Bitcoin (BTC) and cryptocurrency exchanges Binance and Huobi on Sunday halted deposits in TLT, the cryptocurrency native to the FTX meltdown, after tokens worth about $400 million were released without warning.

As the reported the chief executive officer of the Binance exchange, Chanpeng Zhao (CZ), the executors of the contracts governing the ITF moved “all remaining supply” of that asset.

“I’m not quite sure what’s going on,” Zhao said in his tweet, in which he also urged other exchanges to freeze deposits. about the FTT.

Justin Sun, founder of Tron and head of the Huobi stock exchange, heard the appeal of CZ and release via Twitter that they have also suspended ITF deposits. “And we will monitor the situation closely,” reported the businessman, who decided to to throw a lifeline to FTX users. Before the debacle occurred.

A sudden and unannounced move by the ITF that drew attention.

According to the ITF’s operation, as reported by Coindesk, these tokens have a previously established release schedule. This allows, on a periodic basis, batches of cryptoassets to be released and placed on the market.

But this Sunday, in the early morning hours, it was reported that. tokens were launched outside the scheduled time.and without any notice or communication from the now collapsed stock exchange.

In addition to the unannounced move, it seems that what prompted the CEO of Binance was the million tokens that were moved by the implementeras these assets should have been unlocked in batches, according to CZ.

It should be noted that only one day has passed since it was reported that FTX was allegedly hackedwhich cost the company a loss of about $600 million.

If you look at the data From Etherscan, the network block explorer Ethereum, evidence of 195 million TLTs shipped (over $380 million) from the FTX exchange implementer’s account to an unidentified wallet.

Tal handbag has received, as of the closing date of this article, only three nominations. The first two come from the FTX implementer. The most recent is from the KuCoin exchange.

It is striking that the first transfer, made more than 10 hours ago, was for a single TLT and that a few minutes later the second was made, for an amount of 195 million tokens.

As it happens, the last transfer received from that wallet by Kucoin was for only 0.51 FTT, so the question remains whether there will be another movement of funds to the unknown address.

The FTT move and the blocking of deposits on Binance and Huobi follow the controversy sparked by the FTX bustWhich used to be one of the most important cryptocurrency exchanges in the world. On the market.

As CryptoNews has reported from the very beginning of the situation, the executive of FTX is accused of embezzling funds from its users. The money was allegedly used to finance Alameda Research, a sister company of the exchange. For all these reasons, Losses are estimated at over $8 billion.