Binance CEO CZ: We Did Not Masterplan Downfall of FTX

Binance CEO CZ: We Did Not Masterplan Downfall of FTX.

After it was revealed that crypto exchange FTX was suffering a massive liquidity crunch and possible bankruptcy, Binance CEO has since stepped up to clear rumors and any misunderstandings among the community.

CZ & Transparency

In order to stay true to his promise of staying transparent for the community and investors, Binance CEO Changpeng Zhao, or CZ as he’s often known, sent out a statement to the entire Binance team as well as his Twitter account about some important points he needed to make on the issues surrounding FTX that took place these last couple of days.

CZ starts off by denying rumors that the moves he made in dumping his $FTT tokens were part of a plan in acquiring FTX as a whole. Zhao clears up that there was no “master plan” and that he was not aware of FTX or Alameda Research’s financial health until FTX CEO Sam Bankman-Fried reached out to him first.

Related: Sam Bankman-Fried Not Giving Up On FTX Through Leaked Slack Message

We did not master plan this or anything related to it,” CZ continued, “It was less than 24 hrs ago that Sam Bankman-Fried called me. And before that, I had very little knowledge of the internal state of things at FTX.

These statements were made in response to the many rumors circulating around the community, claiming that CZ had planned for FTX’s downfall. 

Despite Zhao denying these rumors, there still seems to be many in the crypto community who seem skeptical that Zhao hadn’t planned the downfall at all.

Updates On FTX

Since Zhao’s statements, both he and the Binance team have revealed that they have backed out on the FTX deal entirely, claiming that FTX’s current situation has already gone “beyond their control” and that Binance would prefer to not get involved in FTX’s reported “mishandling of customer funds” and SEC’s current probe into the exchange.

Related: TRON’s Justin Sun Working With FTX To Create A Solution

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