A group of Wall Street traders spotted the 2008 housing crash and decided to make a bet against it. This story was told in the biographical movie (2015) “The Big Short.”
A Twitter post featuring the faces of this year’s failed crypto ventures—including SBF’s—for a movie called “The Big Short 2,” An imaginary sequel to 2015’s biographical film was seen on the internet over the weekend.
But Changpeng Zhao, also known as CZ, the CEO of crypto exchange Binance that was involved in a series of events that culminated in the bankruptcy of rival exchange FTX, replied to the post, saying that he never officially took a short position against FTX’s native currency.
“Full disclosure: Binance never shorted FTT,” CZ wrote Twitter user Sunday referred to FTT token, which FTX customers use to verify their transactions. spiral The past week has seen a decrease in the stock market.
Last week’s FTX meltdown rocked the crypto world, as the $32 billion cryptocurrency exchange Platform filed for bankruptcy, and its assets were liquidated almost immediately. The crash has also tarnished the once-glowing reputation of FTX founder and former CEO Sam Bankman-Fried—aka SBF—who now risks going to prison for mishandling customer funds.
From the rubble, CZ has emerged as a clear winner, as his company Binance stands to gain the most from FTX’s collapse.
Binance’s decision to sell FTT is part of what ignited the whole crisis. Last week, a public Twitter feud between CZ and SBF ended with CZ dumping Binance’s holdings of FTT, worth around $500 million. Talking at a conference CZ stated that this was an act in response to CoinDesk in Indonesia last week. report On Nov. 2, FTX and Alameda Research, another SBF-founded company, revealed close financial ties.
CZ and Binance could have made even more money from this fiasco. His tweet stated that Binance still had “a bag” FTT had not stopped selling the token before CZ got a call from SBF. It was a “very expensive call,” According to CZ.
Binance didn’t immediately respond The Sunday Review‘s request for comment on CZ’Send a tweet
CZ last week recounted How he had sent a letter of intent for FTX to be purchased in a bid protect users after SBF had explained the situation to it. But Binanceut quickly walked back the offer on Nov. 9 after it said it took a look at FTX’s books. The 11.11. Wall Street Journal reported SBF had mishandled customer funds in order to invest at Alameda Research, which he also ran.
Last week, CZ warned that FTX’s collapse could lead to bigger consequences for the larger crypto sector, saying it could have “cascading effects” It is also compared to the 2008 global financial crises.
The problems with FTX keep getting worse. The exchange announced that it was investigating a $662 million loss over the weekend. “unauthorized transactions” The sale of the tokens took place within the first 24 hours following Friday’s bankruptcy filings.
CZ declared Binance to be open on Sunday halting all deposits of FTT tokens On its platform, it cited the unauthorized transactions involving FTX and advised other crypto-exchanges to do the exact same.
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