Binance CEO Changpeng Zhao: ‘The number of other people’s tweets won’t cause problems’ if an exchange holds client assets
Perhaps it was a dagger in the end, but Binance CEO Changpeng Zhou couldn’t resist giving a little criticism to fallen FTX exec, Sam Bankman-Fried.
It was a reference to the role of the crypto giant known as CZ in the demise of FTX. He planted the seeds of FTX’s demise when he said he would FTT token sale, then valued at $2.1 billionexchange support.
That sent FTX customers fleeing, the token plunging, and triggered a very brief attempt by Binance to rescue FTX.
Binance’s rapid due diligence efforts are now more understandable in light of John Ray’s bankruptcy filing, who detailed the lack of basic controls at FTX.
Ray said customer deposit crypto asset balances are not recorded as assets on the balance sheet. So far, the recovery team has been able to find $564 million in cash and $740 million in crypto secured in cold wallets, and they’re not sure if they can determine how that crypto is allocated. or not.
Also read: 10 crazy things detailed in the bankruptcy filing of FTX
