Binance CEO Warns Staff To Gear Up For A Bumpy Ride Ahead: Report

Zinger Key Points
  • After significant outflows, Binance founder warns his team in a memo.
  • Binance is now the subject of "a lot of extra scrutiny and tough questions," CZ says.

Binance BNB/USD CEO Changpeng Zhao says the "crypto winter" is still ongoing and that the coming months can be difficult.

“While we expect the next several months to be bumpy, we will get past this challenging period — and we’ll be stronger for having been through it,” Zhao stated in an internal memo to Binance employees, according to Bloomberg.

Zhao, known as "CZ" in the crypto industry, said that Binance is now the subject of "a lot of extra scrutiny and tough questions" due to the collapse of prominent rival crypto exchange FTX FTT/USD.

See Also: Canadian Regulator Gets Strict With Crypto Trading Platforms Following FTX Collapse

Sam Bankman-Fried, the founder and former CEO of FTX, was arrested on Tuesday by a U.S. grand jury of money laundering and conspiring to engage in fraud against FTX's clients and lenders.

He is currently in the custody of the Bahamas Department of Corrections after being denied bail.

Concerns Over Liquidity Trouble In Binance

A record number of Bitcoin and Ether withdrawals occurred on Binance on Tuesday as concern over the liquidity of centralized exchanges intensified.

The withdrawals of USD Coin USDC/USD were temporarily frozen due to the outflows, but Zhao mainly disregarded worries about liquidity problems at the exchange.

The U.S. Department of Justice is considering slapping criminal charges against cryptocurrency exchange Binance and specific individuals related to the firm, including Zhao.

According to Reuters, prosecutors are split on whether to pursue the case vigorously or wait to review further evidence.

Next: JPMorgan Says Crypto Market Exhibits Herd-Like Behavior After Investors Bought The Top

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Posted In: CryptocurrencyNewsTop StoriesMarketsBinanceChangpeng ZhaoFTXSam Bankman-FriedU.S. Department of Justice
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