While Bahamians are given priority for withdrawing funds from FTX, some investors outside the archipelago have used NFTs as a currency exchange to get around the barriers.
NFTs as a temporary solution to FTX blockades
Difficult situations stimulate creativity, and the use that some investors have made of non-fungible tokens (NFTs) on FTX underlines this principle. Indeed, while Bahamian users have certain facilities to withdraw their funds, NFTs have been used as a currency to unlock other investors based outside the archipelago.
To do this, those wishing to circumvent the restrictions bought NFTs from Bahamians in the amount they wished to withdraw, and then the agreed sum could be sent to external wallets.
This ingenious manipulation was spotted by a Twitter user. A total of $50 million was reportedly leaked in this way. It is worth noting that even the FTX teams were surprised by this case of application, 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 this morning, Coby, the crypto influencer who hosted a surreal live event three days ago, first wondered about an address withdrawing large amounts of USDT worth millions of dollars:
Can anybody 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Currently $21m withdrawn.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 transactions were revealed, it is no longer possible to trade in this way on FTX.com, which displays a banner with information on this subject. It should also be noted that such a move required blind trust on the part of investors in the third party making the withdrawals.
For the time being, therefore, the Tron ecosystem token solution remains available for withdrawals if you are not a resident of the Bahamas, although it is highly imperfect and requires a financial sacrifice.
