FTX exchange pause ETH deposits and withdrawals on Arbitrum, Solana and BSC during The Merge
FTX has announced that the crypto exchange platform will suspend ETH trading on secondary blockchains until the end of the upgrade in September.
Disclaimer: FTX has removed the source tweet and updated the blog post that was the basis of the original story. This article has been updated based on new official information to confirm that FTX will suspend ETH deposits and withdrawals, and not crypto exchange transactions.
Despite Ethereum developers promising zero downtime in The Merge, one of the most anticipated Ethereum upgrades, members of the crypto community decided to take measures proactive measures to ensure the safety of investor funds. In this effort, crypto exchange FTX has announced to suspend Ether (ETH) trading on secondary blockchains until the end of the upgrade in September.
Shortly after the announcement, FTX deleted the tweet while CEO Sam Bankman-Fried explained that "ETH transactions will continue through Merge."
The official FTX tweet (left) confirms the temporary disabling of ETH transfers. Source: Google Cache
The Unified Upgrade will permanently move the Ethereum blockchain from proof of work (PoW) to a proof-of-stake (PoS) consensus mechanism - aimed at reducing energy consumption and introduces sharding capabilities.
According to Ethereum developers, Consolidation is designed to transition to PoS with no downtime due to total end difficulty (TTD), which will ensure a total strength based transition mining to build chains. Despite the explanation, FTX chose to suspend "deposits and withdrawals until the Consolidation is complete and the network is stable."
The suspension of deposits and withdrawals for Ethereum on different blockchains has been set to begin at different times but is still subject to change based on anticipated complications.
Official FTX Schedule for ETH Deposit and Withdrawal Stop. Source: FTX
FTX also points out that the crypto exchange is not responsible for any losses in the event of large price movements, adding that “It is your responsibility to understand the meaning of this notice”.
Sep 05, 2022