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Tether Says Crypto Exchanges Disabling USDC, USDT Transactions Over 'Heavy Connections With FTX, Alameda, Solana'

Multiple exchanges disabled deposits and withdrawals for Solana-based Tether USDT/USD and USD Coin USDC/USD on Thursday.

What Happened: Tether, in a blog post, said, “the move to suspend USDT deposits on these exchanges is likely just due to the heavy connections between FTX FTT/USDAlameda, and Solana SOL/USD.”

See More: HOW TO BUY TETHER (USDT)

On Thursday, BinanceBitMEX, and OKX disabled USDT and USDC Solana withdrawals in the wake of the collapse of FTX, an exchange known to be closely involved with the network and token. 

After a few hours, Binance resumed operations, saying it decided to do so after “internal assessment and review”, although other exchanges still seem to have disabled deposits and withdrawals for stablecoins on Solana.

Tether CTO Paolo Ardoino tweeted, “USDT issued on Solana is the same as issued on any other chain. The token simply represents a claim to $1 of Tether’s reserves and collateral.” 

Jeremy Allaire, CEO of Circle, the company behind USDC, said it is “unclear what the motivations are for exchange actions, which are disappointing.”

Price Action: SOL is trading at $13.60, down 4.67% in the last 24 hours, according to Benzinga Pro.

Read Next: Bitcoin, Ethereum, Dogecoin Mixed: Analyst Says Cryptos Weakening As ‘Risk Appetite Just Left The Building’

 

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