Bitcoin sitting on a grey background.

Crypto prices slide as investors pull funds from global exchanges after FTX collapse

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Bitcoin and Ether prices fell along with most other major cryptocurrencies in Monday morning trading in Asia as the bankruptcy of the Bahamas-based cryptocurrency exchange FTX.com on Friday sent markets on a rollercoaster over the weekend and raised questions about the finances of other crypto trading platforms.

Hong Kong’s AAX exchange said on Sunday it had suspended trading for 10 days, citing the failure of a third-party partner, which it didn’t identify. The exchange said it has no exposure to FTX.

While Bitcoin and Ether had limited declines, many smaller cryptocurrencies posted sharp losses.

That included the native token of Singapore-based exchange Crypto.com, CRO, which fell 23.7% in the past 24 hours to 8 a.m. in Hong Kong. It reached a near two-year low of US$0.0611 amid reports of large Ether withdrawals from the exchange — sparking concerns it may be in trouble.

The drop in CRO followed a tweet on Sunday by Binance Global Inc. Chief Executive Officer Changpeng Zhao that appeared directed at the Singapore exchange. “If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away.”

Crypto.com Chief Executive Officer Kris Marszalek hit back on Twitter a few hours later: “The ETH transfers that generated so much FUD & speculation on Twitter today were made over three weeks ago, on October 21st to Crypto.com’s whitelisted corporate account at Gate.io.”

Bitcoin was down 2.5% to US$16,360, while Ether fell 2.45% to US$1,220 as of 8 a.m. in Hong Kong.

“I think that we may potentially see trading volume certainly bounce along these lower levels for the time being,” Caroline Bowler, chief executive officer of Australian crypto exchange BTC Markets Pty Ltd, told Forkast in an interview. “There is a lot of fallout still to come on the back of what we’ve seen over the last week.”

Solana saw the heaviest losses in CoinMarketCap’s top 20 cryptocurrencies by market capitalization, excluding stablecoins, falling 11.1% to US$12.97. The token was one of the worst hit in the sell-off last week as it made up a large part of the reserves at FTX’s brokerage arm Alameda Research, which it sold off to try and stave off the collapse of the company. 

Elsewhere, Dogecoin copycat Shiba Inu token fell 8% to US$ $0.000008895, while Polygon dropped 7.7% to US$0.87.





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