Is CZ Spreading Rumors? Bankman-Fried Thinks So: Binance, FTX Drama Continues

Zinger Key Points
  • FTX, Binance bosses engage in war of words: Bankman-Fried claims Changpeng Zhao is trying to malign him.
  • "SBF" further said he would “love” to work with "CZ" "for the crypto ecosystem," but observers remain skeptical.

FTX CEO Sam Bankman-Fried clapped back at rival Binance CEO Changpeng Zhao after the latter apparently threw shade at the billionaire via Twitter.

On Sunday, Zhao said Binance was liquidating its FTT, or FTX Token. He called the move "post-exit risk management" and a "lesson learned" from LUNA LUNA/USD, the notorious $60-billion crypto crash.

"We gave support before, but we won't pretend to make love after divorce," Zhao tweeted. "We are not against anyone. But we won't support people who lobby against other industry players behind their backs."

See Also: EXCLUSIVE - Sam Bankman-Fried Tells Benzinga His Proposal Is Clear Win For DeFi - Crypto Influencer Says FTX CEO A 'Devil' Trying To 'Permanently Ruin' Crypto

Bankman-Fried fired back on Monday, accusing Zhao (referred to in the crypto industry as "CZ") of going after FTX with "false rumors."

FTX is "fine," Bankman-Fried said, adding, “FTX has enough to cover all client holdings. We don't invest (in) client assets (even in treasuries). We have been processing all withdrawals, and will continue to be."

He added that FTX was heavily regulated, even if the regulations slowed it down and that the crypto exchange had generally accepted accounting principles (GAAP) audits, over $1 billion in cash reserve, and a long history of safeguarding client assets.

"SBF" further said he would “love” to work with CZ together 'for the crypto ecosystem.' Some observers on Twitter remain skeptical.



FTX Calms Consumers Having Withdrawal Issues

Meanwhile, FTX tried to address complaints about slow withdrawals, and assured users that the matching engine is functioning properly — even though the node throughput is constrained for Bitcoin withdrawals.

The exchange also addressed stablecoin withdrawals, warning that creations or redemptions might be sluggish until banks open for the week and wires have cleared.

Recouping some of its losses, the FTT token is currently trading down about 4% at $22.28, according to Coinmarketcap.

Next: China Holds $6 Billion Worth Of Crypto, Could 'Kill' Crypto Markets If It Wishes - Analyst

Tickets for Benzing's upcoming Future of Crypto and Fintech Awards events in New York are still available! Click the links to attend the gatherings and to hear from some of the most extraordinary individuals in the space, including: “Shark Tank’s” Kevin O’Leary, SkyBridge’s Anthony Scaramucci, the CFTC’s Christy Goldsmith Romero, the eToro US CEO, and the founder of Yuga Labs as well as leaders from the likes of State Street, Vanguard, Circle, and Laguna Labs.

Photo by Vitolda Klein on Unsplash

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsEventsTop StoriesStartupsMarketsTechBinancechangpengFTXftx crypto exchange
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!