Why did FTX pause withdrawals and how does it contribute to the collapse?

3 answers

• Asher JavierMar 09, 2024 · a year ago
  FTX paused withdrawals due to a security breach that compromised user funds. This decision was made to protect the remaining assets and prevent further losses. The collapse was primarily caused by the breach, as it eroded trust in the exchange and led to a mass exodus of users and investors.
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• KwaneleDec 10, 2020 · 5 years ago
  The pause in withdrawals by FTX was a necessary step to address a major security issue. By temporarily halting withdrawals, FTX aimed to investigate and fix the vulnerability that led to the breach. Unfortunately, the collapse was an unfortunate consequence of the breach, as it created panic among users and triggered a chain reaction of selling.
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• junkou huangMar 23, 2023 · 2 years ago
  FTX's decision to pause withdrawals was a responsible move to mitigate the impact of the security breach. By temporarily halting withdrawals, FTX aimed to prevent further loss of user funds and assess the extent of the breach. However, the collapse was primarily a result of the breach itself, as it shattered confidence in the exchange and triggered a market-wide sell-off.
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