Core Viewpoint - There are concerns regarding the financial stability of cryptocurrency exchange MEXC, particularly following significant withdrawal activity totaling $5.5 billion, leading to speculation about potential insolvency [1][2]. Group 1: MEXC's Financial Situation - MEXC has faced difficulties with user withdrawals, prompting analysts to question its financial health after the exchange recorded massive outflows [2]. - The exchange has publicly denied insolvency claims, asserting its strong financial position and promising to update its Merkle tree data for user verification [2][3]. - MEXC claims that all assets are "fully backed" with over 100% coverage according to Proof-of-Reserves, although this assertion is challenged by data from blockchain analytics platform CryptoQuant [3][4]. Group 2: Market Impact - The outflows from MEXC are part of a broader trend affecting other exchanges, with Gemini and OKX also experiencing notable net outflows [5]. - Major cryptocurrencies such as Bitcoin (BTC), Solana (SOL), and Ethereum (ETH) have been significantly impacted by these outflows [5]. - Recent data indicates that treasury firms have resumed selling their Ethereum holdings, contributing to market weakness, with Ethereum ETFs experiencing $184 million in outflows [6]. Group 3: Ethereum Price Concerns - The price of Ethereum is at risk unless it can regain strength above $4,000, currently trading at $3,868.74 with a slight increase of 0.87% in the last 24 hours [7].

FTX co-founder gary wang and Sam Bankman Fried. Photo by BeInCrypto Disgraced FTX founder Sam Bankman-Fried (SBF) has claimed in a new report that his bankrupt cryptocurrency empire was never insolvent. He alleged that bankruptcy lawyers, not fraud, are to blame for the collapse that shook global crypto markets in 2022. The report drew sharp responses from blockchain investigators quickly. Crypto sleuth ZachXBT accused SBF of misleading people again and trying to shift blame. Behind The FTX Collapse The ...