Binance to liquidate its entire FTX Token holdings after ‘recent revelations’

The CEO of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, said that his company will liquidate its entire position in FTX Token (FTT), the native token of the competing exchange FTX.

On a November 6 cheepZhao said the decision was made after “recent revelations have come to light.”

In a subsequent tweet, CZ explained that the FTT liquidation was “merely post-exit risk management,” referring to lessons learned from the Terra Luna Classic (LUNC) crash and how it affected market players.

He also added that “we will not support people who lobby other industry players behind their backs.”

Cointelegraph understands that Binance’s decision to liquidate the token is due to reports surrounding a recently leaked balance sheet from Alameda Research, founded by Sam Bankman-Fried, alleging billions of dollars. Alameda asset value they are tied in the FTX token.

Alameda Research CEO Caroline Ellison in a Nov. 6 tweet, however, he said the balance sheet did not reflect the real story, noting that the balance sheet in question is only for “a subset of our corporate entities” and other assets worth more than $10k. millions “are not reflected there.”

Bankman-Fried backed up Ellison’s claim in a cheepsaying “a lot of unfounded rumors have been going around.”

Cointelegraph contacted Binance to clarify the reasons for the liquidation, a spokesperson said that the company has no further updates “at this time”.

Related: Bankman-Fried misleads regulators by steering them away from centralized finance

Zhao did not indicate how much FTT Binance would sell, but did reveal that the exchange held around $2.1 billion equivalent to US dollars in Binance USD (BUSD): the stablecoin exchanges – and FTT due to its exit from FTX capital last year.

He added that Binance would try to sell the tokens in a way that “minimizes the impact on the market” and stated that he expects the token sales to take “a few months to complete”.

chain analysis It showed nearly 23 million FTT worth around $584 million at the time transferred from an unknown wallet to Binance which Zhao confirmed as part of the exchange’s token offload.

the ITF price swirled in the series of announcements and in a two hour period in November it increased the price from about $23 to $24.50 followed by a drop of more than 9% to $22.28. FTT is down over 4.3% in the last 24 hours trading around $22.50.