Is CZ Spreading Rumors? Bankman-Fried Thinks So: Binance, FTX Drama Continues

FTX CEO Sam Bankman-Fried clapped back at rival Binance CEO Changpeng Zhao after the latter apparently threw shade at the billionaire via Twitter.

On Sunday, Zhao said Binance was liquidating its FTT, or FTX Token. He called the move "post-exit risk management" and a "lesson learned" from LUNA LUNA/USD, the notorious $60-billion crypto crash.

"We gave support before, but we won't pretend to make love after divorce," Zhao tweeted. "We are not against anyone. But we won't support people who lobby against other industry players behind their backs."

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Bankman-Fried fired back on Monday, accusing Zhao (referred to in the crypto industry as "CZ") of going after FTX with "false rumors."

FTX is "fine," Bankman-Fried said, adding, “FTX has enough to cover all client holdings. We don't invest (in) client assets (even in treasuries). We have been processing all withdrawals, and will continue to be."

He added that FTX was heavily regulated, even if the regulations slowed it down and that the crypto exchange had generally accepted accounting principles (GAAP) audits, over $1 billion in cash reserve, and a long history of safeguarding client assets.

"SBF" further said he would “love” to work with CZ together 'for the crypto ecosystem.' Some observers on Twitter remain skeptical.

"Work together for the ecosystem" pic.twitter.com/KnmRKLW0Qs

— À Block 🚁💰 (@aBlock0) November 7, 2022

FTX Calms Consumers Having Withdrawal Issues

Meanwhile, FTX tried to address complaints about slow withdrawals, and assured users that the matching engine is functioning properly — even though the node throughput is constrained for Bitcoin withdrawals.

The exchange also addressed stablecoin withdrawals, warning that creations or redemptions might be sluggish until banks open for the week and wires have cleared.

Recouping some of its losses, the FTT token is currently trading down about 4% at $22.28, according to Coinmarketcap.

Next: China Holds $6 Billion Worth Of Crypto, Could 'Kill' Crypto Markets If It Wishes - Analyst

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Photo by Vitolda Klein on Unsplash