The feud between Sam Bankman-Fried and Changpeng Zhao, CEOs of FTX and Binance, was devastating for the entire market. Now, new reports reveal that the CEO of FTX sought bailout funds from different sources before settling with Binance.
Secret notes sent by Binance CEO to his employees revealed
According to the Financial Times, Binance CEO CZ shared his concerns with his team before buying the rival exchange. In a memo to his employees, he stated that the acquisition could attract more control to exchanges. According to CZ, this move will pose a major obstacle for the exchange to obtain licenses from different countries.
CZ also told employees it was ‘not a win’ to buy out its biggest competitors. According to the Financial Times, after speaking with Sam Bankman-Fried, CZ said:
Before SBF called me, I knew very little about the internal state of FTX. I could compare them to ours to estimate their income, but that would be inconsistent. I was surprised when he wanted to talk. My first reaction was that he wanted to make an OTC deal. But here we are.
According to sources, CZ had no plans to buy out its struggling competitor. As noted in the note above, this move will put the exchange at odds with regulators, according to the Binance CEO:
Regulators will now watch us more closely and be suspicious of us. It will be harder to get licenses from other countries in the world. All that happened caused a great loss of confidence. We didn’t actually have any plans to buy FTX.
Sam Bankman-Fried seeks help from Wall Street and Silicon Valley before CZ
According to Semafor’s report, FTX CEO requested a $1 billion bailout from Wall Street and Silicon Valley before asking CZ for help with liquidity. FTX’s liquidity crisis came especially after Binance announced on Sunday that it would sell its FTT tokens amid concerns that Alameda would go bankrupt. Allegedly, SBF first turned to Wall Street and Silicon Valley to find a solution to the crisis fueled by Binance. He demanded a rescue package of 1 billion dollars from here.
Will Binance sell its FTT Tokens?
cryptocoin.comAs you follow, CZ, referring to a Coindesk report, shared that Alameda’s balance sheet is only supported by FTT tokens, which may cause a liquidity crisis similar to LUNA-UST, and decided to sell the 2.1 billion FTT Token held by the exchange. . Speaking to SBF later, CZ said that when he learned the details of the incident, he ordered to stop selling FTT.
Despite everything, the FTT price is struggling to recover. Even SBF’s announcement on Twitter that they agreed with Binance was not enough to stop the decline. FTT is currently trading at $4.8. It has lost around 70% in value compared to the last 24 hours. Thus, it lost over 80% with a four-day series of red candles.
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.