Zhao reportedly stated in a tweet from November 6, 2022, that the decision was made in response to “recent disclosures that have come to light.”
According to Cointelegraph, Changpeng “CZ” Zhao, CEO of cryptocurrency exchange Binance, indicated that his business will liquidate all of its holdings in FTX Token, a rival exchange of FTX’s native token.
Zhao reportedly stated in a tweet from November 6, 2022, that the choice had been made in light of “recent discoveries that have come to light.” CZ clarified in another tweet that the FTT liquidation was post-exit risk management in light of the lessons learned from Terra Luna Classic’s (LUNC) collapse and its impact on market players.
We supported each other in the past, but we won’t act romantic after being divorced. No one is a threat to us. However, we won’t endorse individuals who advocate against other business players behind their backs. Moving forward,” Zhao said.
According to Cointelegraph’s source, Binance’s decision to liquidate is thought to be a result of rumors around a leaked balance sheet from Sam Bankman-Alameda Fried’s Research, which claims that billions of dollars worth of Alameda’s assets are linked to FTX’s coin. The CEO of Alameda Research, Caroline Ellison, emphasized that the balance sheet didn’t give the full picture because it only included “a portion of their business organizations” and additional assets worth more than $10 billion weren’t revealed.
Zhao also revealed that the exchange has around $2.1 billion in Binance USD (BUSD), the exchange’s stablecoin, and FTT due to its departure from FTX equity in the prior year, according to Cointelegraph. However, Zhao did not specify how much FTT Binance would be ready to sell. As part of the exchange’s token dumping, Zhao supplied proof that around 23 million FTT, worth $584 million at the time, had been moved from an unidentified wallet to Binance. This information was gleaned via on-chain research.
