- Conor Grosjean tweeted about the millions of dollars transferred from FTXUS.
- He tweeted in response to the SBF’s claim that FTX has always been solvent and has millions in client fund.
- Connor tweeted detailing the exchange’s losses and questioned the SBF about his dealings.
Conor Grogan, director of cryptocurrency exchange Coinbase (NASDAQ:), tweeted about FTXUS’s “questionable redemption system” in response to disgraced FTX founder Sam Bankman-Fred’s claim that FTXUS has “hundreds of millions of dollars in excess of customer balances.”
Grosjean tweeted that the FTXUS redemption system that traders used to “transfer tens of millions off the exchange” could have the effect of questioning FTX and FTXUS decoupling claims:
From November 9 until withdrawals stopped a few days later, traders may have used a questionable FTXUS refund scheme to transfer 10 million from the exchange, this could complicate bankruptcy proceedings and further question FTX separation claims-> FTXUS
— Connor (@jconorgrogan) January 17, 2023
Notably, on January 17, the SBF declared that FTX has “always been solvent,” arguing that the exchange holds millions of customer funds, despite FTX debtors claiming that “there is a significant shortage of digital assets” in both FTX. com and FTX US.
Significantly, Grogan recounted how “toxic redemptions” were very costly for FTXUS, losing more than $40 million, by explaining the risks of Sollet BTC backed by “FTX bankruptcy:”
The problem is that Sollet BTC was backed by FTX fiat. We don’t know if there is ever “evidence of reserves” to support 1:1 for BTC. You know where this is headed.
He was notified by Grogan that the merchants had become aware of the risks, and the peg was soon “broken”. However, he added that FTX will redeem Sollet’s assets 1:1 even after the market price drops. According to him, the agreement between FTXUS and Sollet/FTX is not clear.
Interestingly, Grogan ended his tweet thread by revealing an “FTX Expliter’s” deal of over 3,000 FTXUS Sollet BTC credits, which he returned to FTXUS within hours, commenting that the former had no idea of the agenda behind the act.
In response to Grogan’s tweets, the SBF commented that it was confident that “excess cash in FTX US is much larger than the issue of encapsulated assets to the extent it exists.”
Post-FTXUS losses were revealed; SBF Responds appeared first in Coin Edition.