Cryptocurrency escape breaks record after FTX bankruptcy

SAFAKNA TURKEY – Concerns about the safety of their assets after the bankruptcy of FTX prompted investors to withdraw record amounts of digital money from global cryptocurrency exchanges.

In November, 91,363 bitcoins were withdrawn from central exchanges such as Binance, Kraken, and Coinbase, according to data from analyst firm Crypto Compare. The tokens were worth roughly $1.5 billion compared to last month’s average price of around $16,400.

“Bitcoin recorded the largest exit from exchanges in its history… After FTX, centralized exchanges witnessed a series of exits as market participants sought to protect their funds.”

It is not clear from the report if the funds were sold or transferred to private wallets.

EXIT CONTINUES

The data also showed that the exit trend continued in December, with 4,545 bitcoins withdrawn from central exchanges in the first seven days of the month, while 3,846 bitcoin inflows were seen in the same period last year.

The exits came after FTX, once a major cryptocurrency trading brokerage, filed for bankruptcy in mid-November.

The collapse of the company set off a chain reaction in the crypto market, depriving up to 1 million FTX creditors of access to their assets and undermining investor confidence in cryptocurrencies.