Moneycontrol PRO

Sequoia-backed Flint moves funds out of FTX

In the morning, FTT was down 19% at $17.93, SOL slipped 17% and Serum's SRM token was 10%. Bitcoin which is down 5.6%.

November 08, 2022 / 03:51 PM IST

Sequoia-backed DeFi startup Flint has "moved out" its funds from crypto exchange FTX, which has been under scrutiny after a cold war started between Binance CEO Changpeng Zhao (CZ) and FTX founder Sam Bankman-Fried.

In its official Telegram group, Bengaluru-based Flint on November 8 told its users, “Your funds security is our highest priority and given the situation with FTX and also being our custodial partner we want to ensure that your fund is safe and in order to do that, we have moved out all our funds from FTX safely. Also, the capital which was lent on FTX has been called back.”

Moneycontrol has reported that the public spat on Twitter between CZ and Bankman-Fried has led to the plummeting of the FTX's FTT token.

At the time of publishing this, FTT token was trading at  $18.14 USD and was down 19.71% in the last 24 hours, according to CoinMarket Cap. SOL was lower by 10 percent and Bitcoin was down 4.90 percent.

The industry fears that this could lead to a liquidity problem for FTX and could see a rerun of a Luna-like collapse with a cascading effect on the global crypto ecosystem.

The development was first reported by YourStory.

Flint, founded in 2021 by Akshit Bordia and Anshu Agrawal, allows its users to earn up to 13 percent a year on their deposited funds. It had earlier said that it doesn’t expose users to volatile crypto assets like Bitcoin or Ethereum. It only deals with stable cryptocurrencies like USDT and USDC that are free from fluctuations.

Moneycontrol News
first published: Nov 8, 2022 03:51 pm