Bitcoin’s supply on exchanges hits six-year low!

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Bitcoin’s supply on exchanges is at its lowest level in six years; FTX suspends user accounts; Binance stops working with five Russian banks

Bitcoin’s supply on exchanges is at its lowest level in six years

On-chain analytics firm Santiment has detected a noticeable decrease in the amount of Bitcoin available on cryptocurrency exchanges. According to the analytics company, the supply of Bitcoin on exchanges is currently down to just 5.8 percent of the total BTC supply in circulation.

This is the lowest level of exchange liquidity recorded since December 17, 2017, the big bull run that took the Bitcoin price to nearly $20,000.

Bitcoin whales have movement in their wallets

Santiment also noted that a significant amount of transactions have been made by Bitcoin whales holding between 1,000 and 10,000 BTC in their wallets. According to data obtained by the analytics firm, BTC whales have made an average of 57,400 transactions in the last few weeks.

In addition, it is thought that the bleeding Bitcoin supply on exchanges may cause some price fluctuations. It is estimated that the supply-demand imbalance in the stock exchanges may also lead to new rallies in Bitcoin.

FTX suspends user accounts

Following the recent Kroll cybersecurity breach, bankrupt crypto exchange FTX has temporarily suspended the accounts of users affected by the hack on its demand portal.

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In a post shared on X (formerly Twitter), FTX stated that they have taken such a precautionary measure to prevent possible future incidents following the recent attack. However, the exchange added that it will provide more comprehensive information in the future.

Users were warned not to make any changes to their damage claims in response to the incident. FTX emphasized that all claims data submitted through the Kroll customer claims portal is secure, meticulously recorded and conclusively valid.

The Kroll Restructuring Administration, FTX’s designated claims and notification agent for ongoing insolvency proceedings, was subject to a breach that exposed non-sensitive data associated with claimants involved in the insolvency proceedings.

In response, Kroll assured FTX that they were actively managing the situation and that their oversight was ongoing. FTX later confirmed the assurance, confirming that the breach had no impact on the security of account passwords, internal systems or financial funds.

On the other hand, FTX communicated via the X app that the breach occurred at Kroll and that Kroll directly informed affected individuals about precautionary steps to protect themselves. FTX clarified that Kroll did not compromise FTX account passwords and that FTX’s internal systems were not affected.

However, blockchain analyst ZachXBT confirmed that phishing emails have started reaching FTX customers, suggesting that their personal data has potentially been compromised.

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Binance stops working with five Russian banks

Binance, the world’s largest cryptocurrency exchange, will stop working with five Russian banks.

According to The Wall Street Journal, the exchange has taken such a decision to comply with sanctions.

A few days ago, WSJ published an article about Russians using Binance to transfer money abroad. Following this article, the exchange decided to take action on the issue. 

The company’s P2P service will no longer be available for users to send rubles to each other. Five sanctioned Russian banks were affected by this decision. 

Efforts to comply with sanctions continue

The WSJ article detailed how Binance enabled P2P ruble transactions for sanctioned banks, including Rosbank and Tinkoff Bank. According to messages seen by the sources, customers were able to balance and transfer these funds on Binance. 

According to CCData, Binance continues to handle a significant amount of ruble trading. 

The exchange said last year that it had ceased operations in Russia and was complying with the requirements of the sanctions. 

Binance’s legal troubles in the U.S. over its actions in Russia could continue to escalate, WSJ said. The US Department of Justice has long been investigating Binance for violations of sanctions against Russia. 

A Binance spokesperson said the following about the sanctions:

“Binance is committed to rigorous compliance with global sanctions rules. We sanction individuals, organizations, and countries blacklisted by the international community and block their access to Binance.”

Bitcoin's supply on exchanges is at its lowest level in six years; FTX suspends user accounts; Binance stops working with five Russian banks