{"id":565,"date":"2022-11-11T20:42:04","date_gmt":"2022-11-11T20:42:04","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2022\/11\/11\/ftx-may-be-using-nfts-to-bypass-withdrawal-blocks-for-elite-users\/"},"modified":"2022-11-11T20:42:04","modified_gmt":"2022-11-11T20:42:04","slug":"ftx-may-be-using-nfts-to-bypass-withdrawal-blocks-for-elite-users","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2022\/11\/11\/ftx-may-be-using-nfts-to-bypass-withdrawal-blocks-for-elite-users\/","title":{"rendered":"FTX May Be Using NFTs To Bypass Withdrawal Blocks For Elite Users"},"content":{"rendered":"<p><\/p>\n<div>\n<p>According to crypto Twitter, <a href=\"https:\/\/nftevening.com\/ftxs-near-collapse-could-kill-solana-nfts-heres-why\/\" target=\"_blank\" rel=\"noopener\">FTX<\/a> is allegedly using NFTs to bypass withdrawal blocks for elite users. This investigation kicked off after UpOnly host Cobie pointed out that one particular address withdrew $21m of Tether from FTX and transferred it to another address.<\/p>\n<figure id=\"attachment_83915\" aria-describedby=\"caption-attachment-83915\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><picture decoding=\"async\" class=\"wp-image-83915 size-full\"><source type=\"image\/webp\" data-lazy-srcset=\"https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-scaled.jpg.webp 1200w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-300x169.jpg.webp 300w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-768x432.jpg.webp 768w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-100x56.jpg.webp 100w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-150x84.jpg.webp 150w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-450x253.jpg.webp 450w\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns='http:\/\/www.w3.org\/2000\/svg'%20viewBox='0%200%201200%20675'%3E%3C\/svg%3E\" data-lazy-sizes=\"(max-width: 1200px) 100vw, 1200px\"\/>\n<\/picture>\n<noscript><picture decoding=\"async\" class=\"wp-image-83915 size-full\"><source type=\"image\/webp\" srcset=\"https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-scaled.jpg.webp 1200w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-300x169.jpg.webp 300w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-768x432.jpg.webp 768w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-100x56.jpg.webp 100w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-150x84.jpg.webp 150w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-450x253.jpg.webp 450w\" sizes=\"(max-width: 1200px) 100vw, 1200px\"\/><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-scaled.jpg\" alt=\"FTX trading on a smartphone screen\" width=\"1200\" height=\"675\" srcset=\"https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-scaled.jpg 1200w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-300x169.jpg 300w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-1024x576.jpg 1024w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-768x432.jpg 768w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-100x56.jpg 100w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-150x84.jpg 150w, https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-450x253.jpg 450w\" sizes=\"(max-width: 1200px) 100vw, 1200px\"\/>\n<\/picture>\n<\/noscript><figcaption id=\"caption-attachment-83915\" class=\"wp-caption-text\">FTX is now allegedly using NFTs to bypass withdrawal blocks.<\/figcaption><\/figure>\n<h2><span id=\"FTX_NFTs_What_we_know_so_far\">FTX &amp; NFTs: What we know so far<\/span><\/h2>\n<p><a href=\"https:\/\/twitter.com\/cobie\/status\/1590974648552148992?s=20&amp;t=yc63gi0gi3-TF8AJLSMBEA\" target=\"_blank\" rel=\"noopener\">According to Cobie,<\/a> the address that is withdrawing Tether is a Bahamas account that is withdrawing other people\u2019s funds for them. By doing this, they are allegedly bypassing the internal balance transfers block by selling NFTs on the FTX NFT marketplace.<\/p>\n<p>\u201cEg. Bahamas account creates an NFT, the stuck user buys the NFT with their full balance,\u201d tweeted Cobie. Cobie also pinpointed a particular NFT, with more than $5m of sales on it, that aligns with this theory. After these allegations, FTX paused NFT trading after exceeding over $50m volume on the FTX NFT marketplace on November 10,<\/p>\n<h2><span id=\"Is_this_money_laundering\">Is this money laundering?<\/span><\/h2>\n<p>Many people called out FTX for <a href=\"https:\/\/home.treasury.gov\/policy-issues\/terrorism-and-illicit-finance\/money-laundering\" target=\"_blank\" rel=\"noopener\">money laundering.<\/a> According to US law, money laundering is the practice of engaging in financial transactions that aim to conceal the origin of money obtained from illegal activities.<\/p>\n<p>The Bahamas is long known for being an offshore fund and wealth management hub. The European Union has recently removed The Bahamas from its blacklist of anti-money laundering jurisdictions. However, the country still has several links to money laundering operations.<\/p>\n<p>While there is no concrete evidence that this case is linked to money laundering, individuals may use NFTs to bypass withdrawal blocks to commit money laundering. This is illegal in nearly all jurisdictions.<\/p>\n<h2><span id=\"About_the_FTX_crisis\">About the FTX crisis<\/span><\/h2>\n<p>FTX is the world\u2019s second-largest cryptocurrency exchange. It recently made headlines since it is currently in crisis. It all started when a Coindesk article claimed that FTX founder Sam Bankman-Fried\u2019s crypto hedge fund held billions of dollars in FTT as loan collateral. Therefore, a drop in the value of FTT would damage both companies and put users\u2019 money at risk.<\/p>\n<p>To make matters worse, Binance\u2019s chief executive, Changpeng Zhao, tweeted that the company would be selling $500m worth of FTT holdings due to these revelations. As a result, the value of FTT collapsed, resulting in a surge in withdrawals and user exodus.<\/p>\n<p>This latest alleged initiative by FTX to use NFTs to bypass withdrawal blocks could be a way for the company to keep its elite users. The firm currently needs around $4 billion to stay afloat, with a funding gap of $8 billion.<\/p>\n<div class=\"bottom-text__wrapper post-content\">\n<p>\u00a0<\/p>\n<hr\/>\n<p><em>All investment\/financial opinions expressed by NFTevening.com are not recommendations.<\/em><\/p>\n<p><em>This article is educational material.<\/em><\/p>\n<p><em>As always, make your own research prior to making any kind of investment.<\/em><\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/nftevening.com\/ftx-may-be-using-nfts-to-bypass-withdrawal-blocks-for-elite-users\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to crypto Twitter, FTX is allegedly using NFTs to bypass withdrawal blocks for elite users. This investigation kicked off after UpOnly host Cobie pointed out that one particular address withdrew $21m of Tether from FTX and transferred it to another address. FTX is now allegedly using NFTs to bypass withdrawal blocks. FTX &amp; NFTs: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":566,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[9],"tags":[21],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/nftevening.com\/wp-content\/uploads\/2022\/11\/FTX-logo-on-phoneA-scaled.jpg","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/565"}],"collection":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=565"}],"version-history":[{"count":0,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/566"}],"wp:attachment":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}