Binance and FTX: CEOs set the record straight

Rumors about Binance and FTX exchanges have been rocking the cryptocurrency market since this weekend. While allegations of liquidations of his FTT assets weigh on the first, suspicions of insolvency hang over the second. The respective CEOs spoke to set the record straight.

FTX CEO denies insolvency rumors

While he is accused of betraying the principles of the cryptography industry with his regulatory proposals, now other rumors about him are igniting the web. A crypto media outlet claims that FTX is insolvent due to the financial difficulties of Alameda, a trading company closely linked to FTX. Alameda has a large exposure to FTX (FTT) tokens. The figures show FTT 40% of Alameda’s $14.6 billion in assets.

FTX CEO sets the record straight on Binance case.

However, it would seem that the company’s debt represented approximately 54% of its assets. This suggests a solvency problem for the two companies, both founded by Sam Bankman-Fried aka SBF. These statements caused the price of FTT to plummet. Caroline Ellison, the current CEO of Alameda, wishes to clarify that the outstanding balance sheet does not reflect the entire balance sheet of the company. The document does not include the $10 billion in unlisted assets that rules out any insolvency.

Binance Boss Confirms FTT Balance Liquidation Allegations

Whether FTX is solvent or not, Binance has decided to fully liquidate all of its FTT token holdings. Changpeng Zhao alias CZ, the exchange’s CEO, wants to sell the equivalent of $2.1 billion in FTT and BUSD tokens he got after leaving the capital FTX Last year. As a reminder, Binance helped incubate FTX before exiting the equity position in 2021. “Due to recent revelations that have come to light, we have decided to liquidate the remaining FTT on our books”.

He specifies that he will do his best not to disrupt the market. Also, the operation will take several months. In response to this announcement, Caroline Ellison said that Alameda would happily purchase all of CZ’s FTTs if it wants to effectively minimize the market impact.

Sam Bankman-Fried denies any insolvency. It also reassures users: theexchange continues to turn perfectly despite temporary periods of difficulty as many suffer on the market. But above all, he calls for calm in the face of this sudden chaos. Iit mostly holds to thank those who support him.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential Tremplin.io!

Similar Posts