Vitalik Buiterin and CZ
Binance CEO CZ weighs in on the FTX explosion
In a Monday Twitter discussion hosted by Binance, CZ weighed in on the industry-shaking bankruptcy of FTX. The exchange filed for bankruptcy after it was reported that the company was insolvent. Binance expressed interest in acquiring the exchange but abandoned the deal citing due diligence checks; It later emerged that former CEO Sam Bankman-Fried had secretly transferred $10 billion worth of client funds to bail out the trading company. Alameda Research his after the crisis of Terra.
Commenting on the story, CZ reiterated the need to increase transparency in the industry.
“Anything we can do to increase transparency is good.”
Binance has revealed its holdings cryptocurrency in a blog post following the collapse of FTX. The world's leading exchange has also announced plans to provide proof of funds held on its balance sheet.
During the call, CZ said that co-founder Ethereum Vitalik Buterin has agreed to create a “proof of reserve” protocol and will use Binance as a “white rat” for experiments.
CZ mentioned some of the suspicious activities of FTX and Alameda prior to last week's crisis, reassuring listeners that Binance takes a more cautious approach to its operations.
“We don't borrow money from other people, we don't take VC investments. We specifically do not take VC investments and then return the money to the VCs. However, he admitted that all exchanges cryptocurrency These are inherently risky businesses.”
CZ also took the opportunity to post a warning about other dominoes that might fall.
“If a company's assets do not contain a large percentage stablecoins, it's a risk sign."
CZ's warning comes amid concerns that Crypto.com could face insolvency, with some pointing out that the exchange lacks holdings stablecoins. The company's CEO Kris Marszalek denied the rumors during an AMA panel discussion on Monday.
Crypto Industry Still Working on FTX Incident, Starting In earnest with CZ's Warning that Binance Will Sell Stakes FTT mine. The most recent developments in the story include an incident hack Suspicious exchanges on the exchange were in turmoil over the weekend, in which over $400 million in crypto was moved to external wallets. As new rumors and theories about how Bankman-Fried runs his empire spread in the crypto space, users still cannot access their funds.
During the Spaces call, CZ commented on the shocking nature of the revelations that some say might be appropriate for a Netflix TV series.
"If I were writing a fictional novel, I wouldn't even be able to imagine this."