Binance CEO Changpeng Zhao (CZ) and FTX CEO Sam Bankman-Fried jointly announced Binance’s plans to acquire FTX on Tuesday. The impact of this news on the crypto market has been serious. However, that wasn’t enough and FTX crashed. Now the CEO of FTX has deleted multiple tweets that caused his exchange to have a liquidity crunch.
FTX CEO trying to cover up recent Twitter event
Several crypto community members noticed on Tuesday that the CEO of FTX deleted multiple tweets from his profile after Binance bought the exchange. As part of a tweet storm released on November 7, Bankman-Fried reassured his followers that his struggling stock market is in good financial condition. In this context, Bankman-Fried shared the following:
FTX is enough to cover all client assets. We do not invest in client assets (even treasures). We have processed all withdrawals and will continue to process them.
However, the events of yesterday caused the deleted tweets to be questioned. Multiple reports indicated that FTX stopped withdrawals around 14:00 UTC on Tuesday. Binance CEO CZ later said that FTX was experiencing a ‘liquidity crunch’. So the exchange didn’t have enough funds to pay customers. Bankman-Fried’s decision to delete the aforementioned tweets sparked speculation when he posted that FTX did not have enough assets to cover its customers’ assets.
In the same tweetstorm, Bankman-Fried noted that FTX was ‘heavily regulated’. He also claimed to hold $1 billion in excess cash. “We have a long history of protecting customer assets, and that’s true today,” he said. The accuracy of this statement was also the subject of discussion after Binance bought FTX. Because if FTX really had $1 billion in excess cash, it wouldn’t need a bailout from its biggest competitor.
Another deleted Bankman-Fried tweet was his response to Ryan Salame, CEO of FTX Digital Markets, last month. “It was an absolute pleasure to watch Binance go through some extremely difficult but transformative discussions on Twitter last week to keep the crypto industry moving in the best possible way,” Salame said in a tweet on Oct. He also added, “I’m excited to see you represent the industry in DC in the future! Uh, he’s allowed to go to DC, right?” he added.
What’s behind Bankman-Fried’s tweet deletion?
At the time of publication, Bankman-Fried’s response was interpreted as a mild backlash against Zhao, whose exchange drew the ire of regulators around the world as the crypto boom last year. Some say the post served as Zhao’s motivation to sell Binance’s FTT tokens. He also notes that this ultimately led to FTX’s liquidity crunch. Thus, he suggests that Binance has opened the door to its acquisition of FTX. Regardless, Bankman-Fried will likely try to cover up any evidence of bad blood between him and the Binance CEO, now that Zhao’s company has signaled his intention to bail out FTX through an acquisition.
Until Zhao’s FTX purchase is complete, customers with crypto assets trapped on the exchange cannot be sure that their funds are safe. Both Bankman-Fried and Zhao have made clear their intention to protect client funds above all else. However, this may not be possible depending on how big a gap is in the FTX balance sheet. It is still possible for Binance to withdraw from the deal after due diligence. In that case, Bankman-Fried’s deleted tweets could serve as compelling evidence if a lawsuit is filed against him.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.