FTX NFTs Provided Loophole For Non-Bahamas Residents Wanting to Withdraw Funds

One NFT sold for $10 million on the FTX NFT marketplace, and the only logical conclusion is it was a way to retrieve frozen USD balances




FTX Group has filed for Chapter 11 bankruptcy in the US, and customers have been scrambling to get their money off the platform — by any means necessary.

The crypto exchange had re-enabled withdrawals on Thursday, but only in the Bahamas, the location of its headquarters and many employees. 

Some users without a Bahamian account themselves found a way to circumvent the system by using FTX’s NFT marketplace.

The marketplace tracked over $50 million in volume in the past 24 hours despite a Bahamas securities regulator freezing the assets of local subsidiary FTX Digital Markets (FDM).

Bahamian residents were buying NFTs on the FTX marketplace at inflated prices and withdrawing the cash for non-residents, UpOnlyTV host Cobie tweeted.

Loading Tweet..

A closer look at collections on the marketplace showed some extreme price jumps for some otherwise unremarkable NFTs. 

For instance, on Nov. 10, FTX Crypto Cup 2022 Key #25162 sold for $2.5 million when days earlier the NFTs in this collection were being traded for less than $1. Activity for the collection picked up only between Nov. 10 and Nov. 11 when it saw dozens of trades in the six and seven digit range. 

FTX Crypto Cup NFT sales
FTX Crypto Cup NFT sales

The Great Ape collection and its Ape Art NFTs saw its first jump from $1 to a $500 trade, while the most expensive Ape Art #312 went for a $10 million bid and trade on Friday.   

Ape Art NFT sales
Ape Art NFT sales

One user, AlgodTrading, was lambasted by crypto Twitter for offering a 100K fee to anyone that could help him “KYC on FTX.” However, he responded to the screenshot, claiming that he did not “buy any discounted claims/assets or accounts” and that “these rumors are false.”

The identities of those behind the Bahamian accounts helping non-residents is unknown, and the legalities around this are unclear.  

The FTX.com website states that “depositing and minting of NFTs is not supported on FTX International” and is directing users to its FTX US NFT marketplace.

While bids continue to be placed on FTX International’s NFT marketplace, the last trade occurred at 2:47 AM ET on Nov. 11 for a FTX Crypto Cup 2022 Key NFT for $500, indicating this exit ramp is no longer available.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png


With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.


Launching cryptocurrencies the old fashioned way may soon make a return


Kraken and CertiK brought their beef to social media after Kraken said researchers exploited $3 million through a bug


NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.


EIP-7702 was quickly adopted for the next Ethereum upgrade, but developers haven’t quite locked it down