Binance chief executive officer Changpeng Zhao (CZ) said in a Twitter thread on Tuesday that he had no intention of picking a fight with FTX CEO Sam Bankman-Fried (SBF) — even though CZ’s tweet announcing the liquidation of the FTT token from the world’s largest crypto exchange prompted some users to withdraw from FTX following Zhao’s surprise sale announcement.
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- “I was out with friends yesterday when the topic of whale alerts came up. Following our principles, I decided to be transparent. So I wrote a thread in 5 mins, and posted it,” said Zhao in the Tuesday thread. “Little did I know it was going to be “the straw that broke the camel’s back.”
- Zhao on Monday announced that Binance would slash all FTT tokens on its books due to “recent revelations,” and then retweeted a post showing nearly 23 million FTT tokens were moved to the Binance exchange.
- A report from crypto media outlet CoinDesk last week revealed a balance sheet of FTX’s sister company Almeda Research, suggesting that SBF’s empire might have liquidity and insolvency issues.
- “Funny memes, media & some people tried to color this as a ‘fight.’ Sorry to disappoint, but I spend my energy building, not fighting,” said Zhao in the tweet thread.
- FTX experienced a run on withdrawals on Monday. More than US$451 million worth of crypto deposits have come out from the crypto exchange in the last seven days, as of 12:00 a.m. Hong Kong time, according to crypto data analytics firm Nansen. An FTX Monday tweet shows users were complaining of slow withdrawals.
- “We have been processing all withdrawals, and will continue to be,” SBF assured in a Monday tweet.
- “The tough part is that it’s always sensible to withdraw, even if you think the rumors are like 1% likely to be true,” said Larry Cermak, vice president of research at The Block. Cermak believes the chance of FTX insolvency is “near 0%.”
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