Binance to Liquidate Entire Holdings of FTX Tokens After 'Recent Revelations'
Binance CEO Changpeng Zhao cited "recent revelations" as the reason for the liquidation, noting that the sale of its tokens could take months due to the size of his position.
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CEO of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, has said his company will liquidate its entire position in FTX Token (FTT), the native token of rival exchange FTX.
In a November 6 tweet, Zhao said the decision was made after "recent revelations that have come to light".
In a subsequent tweet, CZ explained that the FTT liquidation was "just post-exit risk management", referring to the lessons learned from the fall of Terra Luna Classic (LUC) and its impact on market players.
He also added "we will not support people who lobby against other industry players behind their backs".
The liquidation of our TTF is just a post-exit risk management, learning from LUNA. We've been supportive before, but we won't pretend to have sex after the divorce. We are against no one. But we won't support people who lobby against other industry players behind their backs. Forward.
— CZ Binance (@cz_binance) November 6, 2022Cointelegraph understands that Binance's decision to liquidate the token is due to reports regarding a recently disclosed balance sheet from Alameda Research, founded by Sam Bankman-Fried, which alleges that billions of dollars in Alameda assets are related to FTX token.
Alameda Research CEO Caroline Ellison in a Nov. 6 tweet, however, said the toll didn't tell the real story, noting that the toll in question only relates to "a subset of our corporate entities" and other assets worth more than $10 billion "are not included".
- the review details some of our biggest longs...
Binance CEO Changpeng Zhao cited "recent revelations" as the reason for the liquidation, noting that the sale of its tokens could take months due to the size of his position.
New
CEO of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, has said his company will liquidate its entire position in FTX Token (FTT), the native token of rival exchange FTX.
In a November 6 tweet, Zhao said the decision was made after "recent revelations that have come to light".
In a subsequent tweet, CZ explained that the FTT liquidation was "just post-exit risk management", referring to the lessons learned from the fall of Terra Luna Classic (LUC) and its impact on market players.
He also added "we will not support people who lobby against other industry players behind their backs".
The liquidation of our TTF is just a post-exit risk management, learning from LUNA. We've been supportive before, but we won't pretend to have sex after the divorce. We are against no one. But we won't support people who lobby against other industry players behind their backs. Forward.
— CZ Binance (@cz_binance) November 6, 2022Cointelegraph understands that Binance's decision to liquidate the token is due to reports regarding a recently disclosed balance sheet from Alameda Research, founded by Sam Bankman-Fried, which alleges that billions of dollars in Alameda assets are related to FTX token.
Alameda Research CEO Caroline Ellison in a Nov. 6 tweet, however, said the toll didn't tell the real story, noting that the toll in question only relates to "a subset of our corporate entities" and other assets worth more than $10 billion "are not included".
- the review details some of our biggest longs...
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