The Binance CEO shares his side of the story about his stance against the rival exchange in the wake of the FTX crash. The collapse of FTX occurred last week when CZ announced that Binance will sell its FTT tokens due to Alameda’s reserve disclosures.
Binance CEO shares facts about FTX collapse
The world’s second-largest cryptocurrency exchange by volume has left the market with a gap of $8.8 billion on its balance sheet. Currently, more than 1 million users’ funds are stuck in the exchange’s hot wallets. Although the stock market made optimistic statements at first, it announced that it went bankrupt last Friday. CEO Sam Bankman-Fried has also officially resigned. Currently, the CEO of FTX is filled by John Ray III, a restructuring attorney working to save Enron, the sinking power conglomerate. SBF will continue to take part in the team.
The highlight of Binance CEO is the point; It is the lack of himself or the stock market that drove FTX to bankruptcy. In a recent tweet, CZ is attempting to dispel an ongoing rumor that the crypto exchange is “shorting” or “dumping” FTT, which led to its collapse.
CZ explained in his new tweets that they have never been shorted against the FTX Token (FTT). Although Binance initially decided to buy the stock market in liquidity crisis, it gave up due to regulatory pressures. Regarding the FTX crisis, CZ says, “We didn’t plan this or anything random about that.” Its founder gives a few details about his meeting with SBF:
I was surprised when he wanted to talk. My first reaction was that he wanted to do an OTC (over the counter) settlement, but here we are. Before SBF called me, I knew very little about the internal situation in FTX.
“FTX art is sneaking money through the door”
New arguments about the stock market and its managers came from Mario Nawfal, the founder of IBC Group. In his statements on Twitter, he claimed that founder Sam Bankman-Fried carried out a large withdrawal process through the back door. Nawfal states that he got this information from old FTX stolen. According to the argument, SBF used a backdoor created at the behest of the exchange’s CTO, Gary Wang. Nawfal’s theses coincide with the hacking influx that stole more than $400 million in funds from FTX on Friday. He also says that FTX’s sister company, Alameda, was also involved in the “hidden money smuggling”:
The SBF instructed Gary Wang (CTO) to create the backdoor that would allow FTX to secretly move funds to Alameda and other entities illegally.
The FTX employee in question was Yung Dot, the exchange’s former senior engineer. He responded to the arguments with a long flood on Twitter. The former employee confirms that he disclosed this information. He also said that Sam Bankman-Fried may have prepared for this rear door about nine months ago:
The whole hack was made possible thanks to the elx trapdoor SBF installed ~9 months ago.
According to the former FTX engineer, the total of cryptocurrencies moved through this backdoor is around $783 million.
All eyes now on Crypto.com
Koindeks.com As you follow, Binance CEO called on all exchanges to share their proofs of reserve after FTX’s bankruptcy. Crypto.com, on the other hand, came to the fore with a “scam” that emerged in the reserve evidence. Crypto.com CEO Kris Marszalek admitted to a mistake made about three weeks ago, that Ethereum was “accidentally” sent to the wrong address, to a surprising extent at the cost of around $400 million. According to Marszalet, Crypto.com wanted to move Ethereum to one of its cold wallets. However, instead, he transferred 320,000 ETH to the corporate wallet of the Gate.io exchange, as covered by The Verge.