The founder of Binance regrets that he reported the crisis in FTX late. Previously, he assured that he was not aware of the problems at the exchange.
The founder of the cryptocurrency exchange Binance, Changpeng Zhao, said in an interview with the media that he regrets that he was late in reporting problems in FTX.
Changpeng Zhao, head of Binance crypto exchange, regrets that he did not speak about the problems with the bankrupt FTX exchange earlier. Zhao said this in an interview with Bloomberg. He noted that the industry missed FTX, allowing it to grow to unthinkable proportions without proper fear.
It is noteworthy that just a week ago, speaking at the African summit of the Milken Institute, the head of Binance assured the exact opposite. According to CNBC, Zhao bluntly stated that he “had no idea FTX was in trouble,” adding that Binance would have sold FTT reserves long ago.
At the same time, the founder of Binance hinted that the problems in the crypto market are unlikely to end on the Genesis crypto broker. Zhao omitted that there were “a couple” of similar troubled companies, but quickly corrected himself, adding that he didn’t know the exact number of such companies. What kind of participants in the crypto market are we talking about, the head of Binance decided not to specify.
Recall that the crisis around FTX began shortly after Changpeng Zhao announced the liquidation of his stake in FTX in FTT tokens. According to the head of Binance, his exchange decided to get rid of its stake in FTT after “recent revelations.”
Zhao did not specify exactly what he was talking about, but his announcement came a couple of days after the media exposed the bloated balance sheet of Alameda Research, a trading firm also founded by Bankman-Freed.
Later, Zhao publicly questioned the reserves of the American exchange Coinbase, citing media reports. However, he quickly deleted the tweet after Coinbase CEO Brian Armstrong said panic was spreading in the market.
