Binance CEO Changpeng Zhao (CZ) has shared the place his firm is at on the cope with FTX. “We didn’t grasp plan this or something associated to it,” he advised the Binance group, reminding them to not commerce the FTX token (FTT) because the due diligence for the acquisition continues to be ongoing. He additional pressured that “FTX taking place is just not good” for anybody within the crypto trade, warning that regulators will “scrutinize exchanges much more.”
Binance’s CEO Informs Staff About FTX Deal
The CEO of cryptocurrency change Binance, Changpeng Zhao (CZ), tweeted Wednesday a observe he despatched just a few hours previous to all members of the Binance group globally. “Given the occasions that transpired over the past couple of days. I need to reiterate just a few factors,” he started, emphasizing:
We didn’t grasp plan this or something associated to it.
Zhao defined that FTX CEO Sam Bankman-Fried (SBF) referred to as him lower than 24 hours in the past. “I used to be stunned when he wished to speak. My first response was, he needs to do an OTC deal … However right here we’re,” CZ detailed, claiming to have “little or no information of the interior state of issues at FTX” previous to the decision.
The Binance boss proceeded to remind his group to not commerce the FTX token (FTT) proper now, elaborating:
Because the due diligence for the deal is on-going, I need to remind everybody: DO NOT commerce FTT tokens. When you have a bag, you’ve got a bag. DO NOT purchase or promote.
He famous that instantly after ending the decision with Bankman-Fried, he requested all members of the Binance group to “cease promoting as a company,” including: “Sure, we’ve a bag. However that’s okay. Extra importantly, we have to maintain ourselves to the next normal than even in banks.”
The Binance chief additionally reminded his group to not touch upon the FTX deal each publicly or internally. “If you’re indirectly concerned, don’t ask. We now have obtained a superb group dealing with it. Issues will play out,” his observe reads.

Zhao additional warned:
FTX taking place is just not good for anybody within the trade.
“Don’t view it as a ‘win for us.’ Consumer confidence is severely shaken. Regulators will scrutinize exchanges much more. Licenses across the globe might be tougher to get. And folks now assume we’re the largest and can assault us extra,” the Binance government cautioned.
“However that’s OK, we’re used to being open and leaning into headwinds. In truth, we embrace scrutiny. We should considerably enhance our transparency, proof-of-reserves, insurance coverage funds, and so on.,” he pressured.
The disaster at FTX unfolded when CZ introduced by way of Twitter that Binance is dumping the entire FTT tokens on its books as a consequence of “latest revelations.” Zhao then introduced a few days later that FTX requested Binance for assist as a consequence of “a major liquidity crunch,” including that his change intends to “totally purchase” ftx.com and “assist cowl the liquidity crunch.”

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What do you consider CZ’s observe to the Binance group? Tell us within the feedback part under.

Kevin Helms

A pupil of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source techniques, community results and the intersection between economics and cryptography.

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