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Changpeng Zhao, the CEO of Binance, has been spending his time at the Abu Dhabi Finance Week allaying fears around crypto as well as outlining the events that led to the eventual downfall of FTX. He explained that he did not expect Sam Bankman-Fried, head of rival FTX, to phone him to tell the firm had become insolvent amid the collapse of his $16 billion business.
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Zhao posted on Twitter the reasons why Binance unloaded its holdings of the FTT digital tokens which triggered the whirlwind downfall of FTX. He explained his reasons why, including the nature of Mr Bankman-Fried’s antagonistic attitude to his rival’s company. He said he tweeted for the sake of “transparency”.
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Zhao also used his time at the event to announce a crypto industry recovery fund. Adding that “we want the strong industry players today to protect the good industry players who might just be hurt short term.”
Why it matters
Despite the downfall of FTX - the fallout of which could affect traditional financial institutions and has already resulted in a number of investigations being launched by authorities in the US and the Bahamas, where FTX was based, Changpeng Zhao is optimistic about the future of the crypto business. Critics have added that regulations need to be tightened for crypto to gain any further credibility and confidence.
