{"id":14379,"date":"2022-11-09T19:15:12","date_gmt":"2022-11-09T19:15:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-ceo-explains-situation-with-ftx-says-we-did-not-master-plan-this-exchanges-bitcoin-news\/"},"modified":"2022-11-09T19:15:12","modified_gmt":"2022-11-09T19:15:12","slug":"binance-ceo-explains-situation-with-ftx-says-we-did-not-master-plan-this-exchanges-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-ceo-explains-situation-with-ftx-says-we-did-not-master-plan-this-exchanges-bitcoin-news\/","title":{"rendered":"Binance CEO Explains Situation With FTX \u2014 Says ‘We Did Not Master Plan This’ \u2013 Exchanges Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Binance CEO Changpeng Zhao (CZ) has shared where his company is at on the deal with FTX. \u201cWe did not master plan this or anything related to it,\u201d he told the Binance team, reminding them not to trade the FTX token (FTT) as the due diligence for the acquisition is still ongoing. He further stressed that \u201cFTX going down is not good\u201d for anyone in the crypto industry, warning that regulators will \u201cscrutinize exchanges even more.\u201d<\/strong><\/p>\n

Binance\u2019s CEO Informs Employees About FTX Deal<\/h2>\n

The CEO of cryptocurrency exchange Binance, Changpeng Zhao (CZ), tweeted Wednesday a note he sent a few hours prior to all members of the Binance team globally. \u201cGiven the events that transpired over the last couple of days. I want to reiterate a few points,\u201d he began, emphasizing:<\/p>\n

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We did not master plan this or anything related to it.<\/p>\n<\/blockquote>\n

Zhao explained that FTX CEO Sam Bankman-Fried (SBF) called him less than 24 hours ago. \u201cI was surprised when he wanted to talk. My first reaction was, he wants to do an OTC deal \u2026 But here we are,\u201d CZ detailed, claiming to have \u201cvery little knowledge of the internal state of things at FTX\u201d prior to the call.<\/p>\n

The Binance boss proceeded to remind his team not to trade the FTX token (FTT) right now, elaborating:<\/p>\n

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As the due diligence for the deal is on-going, I want to remind everyone: DO NOT trade FTT tokens. If you have a bag, you have a bag. DO NOT buy or sell.<\/p>\n<\/blockquote>\n

He noted that immediately after finishing the call with Bankman-Fried, he asked all members of the Binance team to \u201cstop selling as an organization,\u201d adding: \u201cYes, we have a bag. But that\u2019s ok. More importantly, we need to hold ourselves to a higher standard than even in banks.\u201d<\/p>\n

The Binance chief also reminded his team not to comment on the FTX deal both publicly or internally. \u201cIf you are not directly involved, don\u2019t ask. We have got a good team handling it. Things will play out,\u201d his note reads.<\/p>\n

Zhao further warned:<\/p>\n

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FTX going down is not good for anyone in the industry.<\/p>\n<\/blockquote>\n

\u201cDo not view it as a \u2018win for us.\u2019 User confidence is severely shaken. Regulators will scrutinize exchanges even more. Licenses around the globe will be harder to get. And people now think we are the biggest and will attack us more,\u201d the Binance executive cautioned.<\/p>\n

\u201cBut that\u2019s OK, we are used to being open and leaning into headwinds. In fact, we embrace scrutiny. We must significantly increase our transparency, proof-of-reserves, insurance funds, etc.,\u201d he stressed.<\/p>\n

The crisis at FTX unfolded when CZ announced via Twitter that Binance is dumping<\/a> all of the FTT tokens on its books due to \u201crecent revelations.\u201d Zhao then announced a couple of days later that FTX asked Binance for help due to \u201ca significant liquidity crunch,\u201d adding that his exchange intends<\/a> to \u201cfully acquire\u201d ftx.com and \u201chelp cover the liquidity crunch.\u201d<\/p>\n

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Binance<\/a>, Binance Acquires FTX<\/a>, Binance FTX<\/a>, Binance FTX deal<\/a>, Binance helps FTX<\/a>, Changpeng Zhao<\/a>, CZ<\/a>, CZ FTX<\/a>, CZ Sam Bankman-Fried<\/a>, do not buy FTT<\/a>, do not trade FTT<\/a>, FTT<\/a>, FTT sell-off<\/a>, FTX liquidity crunch<\/a>, FTX tokens<\/a>, Sam Bankman-Fried<\/a><\/div>\n<\/div>\n

What do you think about CZ\u2019s note to the Binance team? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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