While Bahamians are given priority for withdrawing funds on FTX, some investors outside the archipelago have used NFTs as currencies to circumvent barriers.
NFTs as a temporary solution to FTX blockages
Tough situations spur creativity, and the use some investors have made of non-fungible tokens (NFTs) on FTX underscores this principle. Indeed, while users in the Bahamas have certain facilities for withdrawing their funds, NFTs served as currencies to unlock other investors based outside the archipelago.
For this, people wishing to circumvent the restrictions bought NFTs from Bahamians for the amount they wanted to withdrawthen the agreed sum could be sent to external wallets.
This ingenious manipulation was notably spotted by a Twitter user. In total, 50 million dollars would have leaked in this way. Note also that even the FTX teams were surprised by this application case, if we are to believe their response to this tweet:
lmao guess who just found out how 50m just flowed out of FTX https://t.co/UPj6IXC7U6 pic.twitter.com/WYOk7CMtSu
— nick 🦑 utxo.club (@utxoclub) November 11, 2022
Earlier in the morning, Coby, the crypto influencer who hosted a surreal live three days ago, first wondered on an address withdrawing large amounts of USDT for a value of several million dollars:
Can anyone explain what is happening with this address?https://t.co/dLhCoqA9Fd
It is withdrawing millions of Tether from FTX and sending them to 0x18df7b342cdd4e7db0def4546c0ed01e79fd207e
Currently $21m withdrawn.
—Cobie (@cobie) November 11, 2022
Since these operations were revealed, it is no longer possible to operate in this way on the FTX.com site, which displays an information banner on this subject. It should also be noted that such a maneuver required blind trust on the part of investors in the third party making the withdrawals.
To withdraw funds if you do not reside in the Bahamas, there remains, for the moment, the solution of tokens from the Tron ecosystem, although this is very imperfect and requires a financial sacrifice.
👉 Also Read – “We Were Left in the Dark” – FTX Institutional Sales Head Jumps Ship
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