Changpeng Zhao (CZ), the CEO of Binance. He has denied accusations that he was to blame for the failure of the FTX cryptocurrency exchange. Notably, FTX experienced a liquidity crisis shortly after the founder of Binance announced that the conversation would be selling off all of its FTT tokens.
Zhao said in a tweet on December 6 that Sam Bankman-Fried (SBF), the creator of FTX, should not be held responsible for the collapse. Instead, he organized the entire catastrophe, calling him “one of the worst scammers in history.”
4.2 SBF perpetuated a narrative painting me and other people as the “bad guys”. It was critical in maintaining the fantasy that he was a “hero.” SBF is one of the greatest fraudsters in history, he is also a master manipulator when it comes to media and key opinion leaders.
— CZ 🔶 BNB (@cz_binance) December 6, 2022
SBF committed numerous blunders, but CZ said he intended to portray himself as a hero in the exchange collapse. Interestingly, Zhao was charged with being the cause of the exchange’s downfall after declaring the liquidity of FTT, the native token of FTX. Zhao responded, saying that if the FTX business model was sound, it could not be ruined by a single tweet.
4. “CZ’s tweet destroyed FTX”
No healthy business can be destroyed by a tweet.
However, there was a tweet that may have, Caroline’s tweet 16 minutes after mine on Nov 6. Data shows it was the real cause for people to dump FTT:https://t.co/yWFqKvbqMU
— CZ 🔶 BNB (@cz_binance) December 6, 2022
The CEO of Binance expressed these views in response to a recent Bloomberg piece that sought to link Twitter activity to the collapse of FTX.
It’s important to note that SBF started a media tour after FTX’s collapse to explain what transpired. He used Twitter at first to describe the situation.
SBF acknowledged in this sentence that his legal team did not like his public statements and sentiment. As a result, Bankman-Fried was told to “shut up” by Ira Sorkin. Sorkin is the attorney who defended Bernie Madoff, the mastermind of the most significant individual Ponzi Scheme.
Consumers are suing SBF and the exchange’s former promoters for an $11 billion class action lawsuit.
Binance promised to keep employing and teaching about blockchain
Changpeng “CZ” Zhao, CEO of Binance, stated on Tuesday that the team at Binance includes members from over 100 different nations, but talent is still lacking. Nevertheless, the CEO of Binance has promised to keep employing and teaching individuals about blockchain, Web3, and cryptocurrency despite layoffs by cryptocurrency startups.
Thousands of employees have been let off by cryptocurrency companies, including exchanges like Coinbase, Crypto.com, Celsius, By bit, and BlockFi. The collapse of FTX has prolonged the crypto winter, pushing businesses to keep firing workers worldwide.
Binance recently made intentions to hire 8,000 people by the end of 2023. The decision was made when the FTX crisis and macroeconomic factors were still pressuring the crypto market. Additionally, Binance has contributed close to $2 billion to its Industry Recovery Initiative. The contribution was to aid cryptocurrency companies struggling with liquidity issues after the demise of FTX.
While some attribute the collapse of FTX to Binance after it launched selling FTT tokens, Binance CEO believes that this should have been done sooner to stop FTX from being too successful. Sam Bankman-Fried participates in interviews to discuss what went wrong and his relationship with the trading business Alameda Research.
Following the bankruptcy of cryptocurrency exchange FTX, Binance saw a 30% surge in trading activity. BNB, a native token of Binance, is currently trading at $288, down more than 2% in the last day.
