Binance, Huobi Block FTT Deposits After $420M Worth of Tokens Illicitly Released

Crypto exchanges Binance and Huobi blocked deposits of FTT, FTX’s native tokens, this morning after nearly $400 million worth of the tokens were illicitly released.

FTT tokens follow an unlocking schedule wherein large batches of the tokens are periodically released. This morning, however, the tokens were released out of schedule without any warning or communication from FTX or related parties as of writing time.

Over 192 million FTT tokens were released, blockchain data shows. These were released from the main deployer address.

Binance founder Changpeng Zhao noted on Twitter: “Binance has stopped FTT deposit, to prevent potential of questionable additional supplies affecting the market. Also encourage other exchanges to do the same.”

Justin Sun-backed Huobi Global followed the move shortly afterwards. “(We) will closely monitor the situation,” Sun tweeted.

The FTT release comes on the back of a week-long drama involving FTX, whose once-high-flying CEO Sam Bankman-Fried was revealed to have misappropriated client funds with trading firm Alameda Research, his other company.

FTX filed for Chapter 11 bankruptcy proceedings on Friday and contagion risks are now permeating throughout the broader crypto market.