Binance Dumps $500M FTX Tokens (FTT) After CEO’s ‘Recent Revelations’!
Binance Dumps $500M FTX Tokens (FTT) After CEO’s ‘Recent Revelations’!
This Sunday, CEO of the Binance crypto exchange Changpeng “CZ” Zhao revealed that his exchange will be liquidating all of its remaining FTX tokens FTT.
CZ’s ‘Revelation’
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 Binance (@cz_binance) November 6, 2022
The CEO explained that Binance received $2.1 billion in BUSD and FTT from exiting FTX equity last year, but that “Due to recent revelations that have come to light,” the exchange has decided to “liquidate any remaining FTT on our books,” CZ wrote.
Soon after this announcement, it was revealed that an unknown wallet had transferred more than $500 million wroth of FTT to Binance, which CZ later on confirmed was part of his exchanges move in exiting the FTX token.
Yes, this is part of it. https://t.co/TnMSqRTutr
— CZ 🔶 Binance (@cz_binance) November 6, 2022
In his thread, CZ explains that the reason for liquidating all their FTT was simply “post-exit risk management,” in a cautious move they learned to make as a result of the LUNA crash earlier this year.
CZ then went further on to say, “We are not against anyone. But we won’t support people who lobby against other industry players behind their backs.”
Related: SEC Files a Motion to Extend The Time Replaying Ripple’s (XRP) Amicus Briefs
FTX’ Leaked Balance Sheet
These accusations of “lobbying against other industry players” that CZ had written were most likely referring to the recent reports of a leaked balance sheet showcasing Sam Bankman-Fried-founded Alameda Research, which alleges billions of dollars worth of Alameda’s assets are tied up in FTX’s token.
However, since then, FTX CEO Sam Bankman-Fried has put out a statement on his own Twitter account denying these rumors circulating around FTX’s balance sheet, calling them ‘unfounded’.
2) A bunch of unfounded rumors have been circulating. You can see https://t.co/EBmqPhqCBl.
FTX keeps audited financials etc. And, though it slows us down sometimes on product, we're highly regulated.
— SBF (@SBF_FTX) November 6, 2022
Alameda CEO Caroline Ellison also shot back at CZ, arguing that if he wants “to minimize the market impact on [Binance’s] FTT sales,” the hedge fund could buy it all at $22–the token’s current trading price.
Ellison then went on to further explain that Coindesk’s report on the fact that Alameda had over $10 billion of assets “not reflected” on the leaked balance sheet did not fully reflect the full picture.
A few notes on the balance sheet info that has been circulating recently:
– that specific balance sheet is for a subset of our corporate entities, we have > $10b of assets that aren’t reflected there— Caroline (@carolinecapital) November 6, 2022
Related: FTX Is Developing Its Own Stablecoin: CEO Sam Bankman-Fried
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