Major exchanges delist FTT: Users find a loophole

• Binance and KuCoin have announced FTT delisting.
• Users find a backdoor in the Bahamas to get the money out.
• FTT continues to fall.

Troubles seem to continue for Sam Bankman-Fried and FTX, as, after its collapse, many major crypto exchanges around the world announced the delisting of FTT. 

Binance and KuCoin have announced the deletion of FTT; KuCoin said that the FTT/USDT; perpetual contract would be delisted on 14th November. Binance declared it would delist FTT trading pairs, FTT/BNB, FTT/BTC, FTT/ETH, and FTT/USDT, from 15th November. However, the exchange will still offer the FTT/BUSD pair.

At #Binance we conduct regular reviews of listed assets to ensure they meet our standards to protect our users.

Based on our recent reviews, we will remove and cease trading of several $FTT trading pairs on 2022-11-15 04:30 (UTC):

🔸FTT/BNB
🔸FTT/BTC
🔸FTT/ETH
🔸FTT/USDT

— Binance (@binance) November 14, 2022

In a statement on 13th November, The Royal Bahamas Police Force said that financial investigators and the Bahamas Security regulators were looking into allegations of criminal activities associated with the FTX debacle. 

On 10th November, FTX tweeted that “Bahamian HeadQuarters regulations and regulators have allowed the company to withdraw the Bahamian fund. However, Security Commission denied any such claims on 11th November. 

1) Per our Bahamian HQ's regulation and regulators, we have begun to facilitate withdrawals of Bahamian funds. As such, you may have seen some withdrawals processed by FTX recently as we complied with the regulators.

— FTX (@FTX_Official) November 10, 2022

Users found a Loophole.

Argus, in their analysis, found that desperate FTX users worldwide are now relying on FTX users in the Bahamas for withdrawals. Some are buying NFTs in the name of Bahamian citizens; one such case where an NFT traded for $9 three weeks ago sold for $10 million, and another NFT priced similarly was sold at $888,888.88 this week. All this is because users have found a loophole in the Bahamas. 

FTX only allows withdrawals in the Bahamas, but they stopped liquidation everywhere in the world. High-net-worth players are paying astronomical prices for NFTs on FTX when the NFT market is nosedive. 

1) Per our Bahamian HQ's regulation and regulators, we have begun to facilitate withdrawals of Bahamian funds. As such, you may have seen some withdrawals processed by FTX recently as we complied with the regulators.

— FTX (@FTX_Official) November 10, 2022

Kraken, a crypto exchange in SanFrancisco, US, announced that it cooperated with authorities and froze accounts of all FTX groups, Alameda research, and their management. 

Kraken has spoken with law enforcement regarding a handful of accounts owned by the bankrupt FTX Group, Alameda Research and their executives. Those accounts have been frozen to protect their creditors.

Other Kraken clients are not affected. Kraken maintains full reserves.

— Kraken Exchange (@krakenfx) November 13, 2022

FTT continues to fall

FTT, the native token of FTX, has lost 95% of its value since the news of bankruptcy broke out. The coin lost 75% of its value since the slump began. At the time of writing, the token was valued at $1.59, far from its high of $25. 

With everything going on ever since the FTX debacle started and now major exchanges delisting FTT from them, it is indicative of the fact that users are waiting to get their money back sometime soon. Although the loophole for Bahamian citizens has been found, since its news broke out, authorities might have been doing something to close this loophole. The only thing left to do is wait and watch.