Chanpeng Zhao, the CEO of Binance, announced via Twitter on Sunday that his exchange will sell the last of the FTT tokens they had acquired last year as part of their exit from Alameda-affiliated FTX.
Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX and the venture capital firm Alameda Research, has criticized rival Binance for attempting to undermine FTX with unfounded rumors.
SBF stated in a tweet thread that “FTX is fine. Assets are fine,” contrary to circulating rumors that his trading firm and exchange were in financial woes.
The 30-year-old crypto billionaire claims that FTX has sufficient funds to support all client holdings and that customer assets are never invested in treasuries. He further stated that they have been and would continue to process all withdrawals.
FTX is “heavily regulated, even when that slows us down. We have GAAP audits, with > $1b excess cash. We have a long history of safeguarding client assets, and that remains true today,” He continued.
In the tweet thread’s conclusion, he said “I’d love it, @cz_binance, if we could work together for the ecosystem”
The final FTT tokens that Binance CEO Chanpeng Zhao had bought as part of his exit from Alameda-affiliated FTX last year will be sold, he revealed via Twitter on Sunday.
The tech entrepreneur did not specify the amount of FTT his company will sell, but as part of FTX’s ownership transfer to Binance last year, the cryptocurrency exchange received cash in the form of BUSD (Binance’s stablecoin) and FTT valued at roughly $2.1 billion USD.
According to CZ, Binance is selling off its FTT holdings as part of its lesson from LUNA regarding post-exit risk management. “We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs,” he continued.
Speculation began to spread over the financial stability of Sam Bankman-trading Fried’s company Alameda Research after a leaked balance sheet was analyzed by CoinDesk and revealed that the trading firm possessed $5.8 billion worth of FTT tokens as of June 30. Alameda has assets worth $14.6 billion, liabilities worth $8 billion, including $7.4 billion in undisclosed loans.
The corporation may be far more vulnerable than onlookers would have thought, according to a detailed analysis of the data from the CoinDesk report.