Binance’s CZ Says He Wasn’t Shorting FTX’s Tokens Before Crash

In 2008, a group of Wall Street traders saw the housing market crash and decided to bet on the housing market, making it rich in a scripted story in the series. 2015 biopic “The Big Short”.

One Twitter the post introduces the faces of this year’s failed crypto projects—including SBF’s—for a movie called “The Big Short 2,” the fictional sequel to the 2015 biopic , appeared over the weekend.

But Changpeng Zhao, also known as CZ, the CEO of crypto exchange Binance who was involved in a series of events that culminated in the bankruptcy of rival exchange FTX, has responded. post, stating that he has never officially taken a short position against native FTX. currency.

“Full disclosure: Binance never short FTT,” CZ Written on Twitter on Sunday, mentioning the FTT token used by FTX customers that saw its value spiral decreased in the past week.

Last week’s FTX crisis rocked the crypto world, as $32 Billion Cryptocurrency Exchange communication filed for bankruptcy and see it liquidation assets almost overnight. The accident also tarnished Once upon a time, fame of FTX founder and former CEO Sam Bankman-Fried—aka SBF—who is now venturing go to jail for mishandling customer funds.

Cryptocurrency Crash

From the ruins, CZ has emerged as a clear winnerbecause his company is Binance will make the most money from the collapse of FTX.

Binance’s decision to sell FTT was partly what sparked the entire crisis. Last week, one public feud on Twitter between CZ and SBF ended with CZ dumping Binance’s FTT holdings, worth about 500 million USD. Speaking at a conference in Indonesia last week, CZ said that the action was in response to a CoinDesk report on November 2 revealed the close financial relationship between FTX and Alameda Research, another company founded by SBF.

When Binance dumped its tokens, it sparked the current crypto crisis by sparking a Massive sell-off market and 6 billion USD when withdrawing from FTX in less than 72 hours.

But CZ and Binance could be even bigger winners from the setback. In his Twitter post, he wrote that Binance still had “a bag” of FTT before it stopped selling tokens when CZ received a call from SBF. It was a “very expensive call,” according to CZ.

Binance did not immediately respond Luckrequest comment on CZ’s tweet.

Last week, CZ told how he sent a letter expressing his intention to buy FTX for user protection after SBF explained the situation to him. But Binanceut is fast Step back offer on November 9 after saying it had reviewed FTX’s books. On November 11, The Wall Street Journal report that SBF mishandled client funds to invest in Alameda Research, a trading company he also runs.

Last week, CZ warned that the crash of FTX could lead to bigger consequences for the larger crypto sector, saying it could have “cascading effect” and compare it to the 2008 global financial crisis.

Problems for FTX are continuing to pile up. Over the weekend, the exchange said it was investigating the loss of 662 million USD in “unauthorized transactions” of its token, which took place in the 24 hours after the company declared bankruptcy on Friday.

On Sunday, CZ announced that Binance will be suspend all deposits of FTT . tokens on its platform, citing unauthorized transactions involving FTX and advising other crypto exchanges to do the same.

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