Reports revealed that 44,444 Bitcoin worth around $745 million have left exchanges in the last 30 days.
Multiple crypto exchanges witnessed massive amounts of asset withdrawals after the FTX meltdown.
Terra Luna founder Do Kwon also cashes out 9.64 Bitcoins in Serbia.
Terra Luna ecosystem & crypto exchange FTX, which sent cryptocurrency prices plummeting and left any firms exposed to the exchange reeling from losses, made the ongoing crypto winter even worse.
The fallout from last month's events appears to have followed the industry into December as well. Since the fallout of the crypto exchange FTX, users' trust in cryptocurrency exchanges has eroded. As a result, several crypto users began withdrawing their assets from exchanges.
According to Glassnode reports, 44,444 Bitcoin worth around $745 million have left exchanges in the last 30 days. This figure appears to be a continuation of a trend that began with the exchange’s meltdown.
Reports also noted that over the past few weeks, exchanges such as Binance, Coinbase, and many others have witnessed a massive amount of asset withdrawals from their platforms. Experts believe that all of this is happening as a result of FTX's mismanagement of users' funds, which has created a transparency issue in the market.
Not just crypto investors but famous personalities also started withdrawing particular assets from the exchanges after the fallout of crypto exchanges. Recent reports noted that the mastermind behind the Terra Luna ecosystem collapse has cashed out a remarkable amount of 9.64 Bitcoins in Serbia.
On December 23, Do Kwon transferred $120,000 in BTCs from the Luna Foundation Guard (LFG) wallet to Binance via the relay wallet. This transaction helped the South Korean government in locating his current location.
The FTX fallout has significantly eroded crypto investors' trust, creating a transparency issue in the crypto market. These concerns are affecting both the trading volume and operation of cryptocurrency exchanges.
As Glassnode previously reported, the FTX event exacerbated Bitcoin investors to withdraw to self-custody at a historic rate of 106k per month. This rate was last witnessed in the month of April & November in 2020, and June & July in 2022.
Experts believe that the only way to address these transparency concerns is via releasing authentic proof of reserve report and strict crypto regulation that oversees exchange operations and user funds.
What are your thoughts on the massive amount of Bitcoin withdrawals for crypto exchanges? Share your thoughts in the comment section below.
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