Changpeng Zhao noted that now regulators will monitor crypto exchanges even more closely and asked his team not to consider the “competitor’s fall” as a “victory”
The head of Binance, Changpeng Zhao (CZ), has published clarifications regarding the situation with the purchase of the FTX exchange. He argues that the events taking place were not a pre-planned plan. Before FTX CEO Sam Bankman-Freed (SBF) called, Changpeng Zhao said he knew very little about FTX’s internal state of affairs. CZ was surprised and thought the SBF wanted to offer him an OTC deal, but things turned out differently.
In the spirit of transparency, might as well share the actual note, sent to all Binance team globally a few hours ago.https://t.co/IUNkPcLC8T pic.twitter.com/XGlIJB7EV5
— CZ 🔶 Binance (@cz_binance) November 9, 2022
CZ advised employees not to buy or sell FTT tokens if they have any, noting the high volatility. He wrote that immediately after talking with SBF, he stopped the sale of FTT coins by the Binance exchange.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ 🔶 Binance (@cz_binance) November 8, 2022
According to CZ, he asked the team not to comment on the deal either publicly or internally and warned against questions from those who are not directly involved in it.
In his address, CZ also noted that the FTX price drop is not good for anyone in the industry and asked employees not to view it as a “victory”. According to him, user confidence has been shaken, and regulators will now monitor exchanges even more carefully, it will become more difficult to obtain licenses around the world.
CZ advised employees not to buy or sell FTT tokens if they have any, noting the high volatility. He wrote that immediately after talking with SBF, he stopped the sale of FTT coins by the Binance exchange.
The purchase of FTX by the Binance exchange is being actively analyzed and discussed in the global crypto community. So, Bernstein analysts warned about the growth of Binance’s share in the crypto market up to 80% if the deal is concluded. In their opinion, this may attract the attention of antitrust regulators.
1) Hey all: I have a few announcements to make.
Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.).
— SBF (@SBF_FTX) November 8, 2022
