The CEO of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, said his company will liquidate the entirety of its position in FTX Token as part of its holdings worth $2.1billion.
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Binance CEO Changpeng Zhao cited “recent revelations” as the reason for the liquidation, noting the sale of its tokens could take months to complete due to the size of its position.
In a Nov. 6 tweet, Zhao said the decision was made after “recent revelations that have came to light.”
In a later tweet, CZ explained the FTT liquidation was “just post-exit risk management” referring to lessons learned from the fall of Terra Luna Classic (LUNC) and how it impacted market players.
He also added “we won’t support people who lobby against other industry players behind their backs.”
“Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards.” CZ Binance (@cz_binance) November 6, 2022
Binance’s decision to liquidate the token is due to reports surrounding a recently leaked balance sheet from Sam Bankman-Fried-founded Alameda Research, which alleges billions of dollars worth of Alameda’s assets are tied up in FTX’s token.
Also Read: Binance BNB Smart Chain Paused Over Multimillion Dollar Hack; The Biggest Hack?
Alameda Research CEO Caroline Ellison in a Nov. 6 tweet however said the balance sheet wasn’t reflective of the true story, noting that the sheet in question is only for “a subset of our corporate entities” and other assets worth over $10 billion “aren’t reflected there.”
“the balance sheet breaks out a few of our biggest long positions; we obviously have hedges that aren’t listed
- given the tightening in the crypto credit space this year we’ve returned most of our loans by now”
— Caroline (@carolinecapital) November 6, 2022
Bankman-Fried backed Ellison’s claim in a tweet, saying a “bunch of unfounded rumors have been circulating.”