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Coinbase downplays the risk and claims to have little exposure to FTX

Coinbase tweeted that a sizable number of new users had joined the platform, temporarily halting operations. The cryptocurrency exchange also claimed it had limited exposure to the bankrupt cryptocurrency exchange FTX.

In a blog post published on Tuesday, Coinbase—the second-largest cryptocurrency exchange by spot trading volume with more than 108 million users—said it had “no exposure” to FTX’s token FTT, no loans to the company, no exposure to its sister company Alameda Research, and the only connection to it was a US$15 million deposit.

Coinbase experienced an operational halt, precisely when FTX CEO Sam Bankman-Fried announced the acquisition on Twitter, according to crypto media outlet Decrypt.

Furthermore, Kraken, another bitcoin exchange, also came to a standstill.

Early on Tuesday morning, Binance, the biggest cryptocurrency exchange in the world, revealed its intention to acquire FTX, just as the latter was experiencing a US$6 billion outflow spike during the previous 72 hours.

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