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The CEO of cryptocurrency exchange Binance, Changpeng \u201cCZ\u201d Zhao, said his company will liquidate the entirety of its position in FTX Token (FTT), the native token of competing exchange FTX.<\/p>\n
In a Nov. 6 tweet<\/a>, Zhao said the decision was made after \u201crecent revelations that have came to light.\u201d<\/p>\n In a later tweet, CZ explained the FTT liquidation was \u201cjust post-exit risk management\u201d referring to lessons learned from the fall of Terra Luna Classic (LUNC) and how it impacted market players. <\/p>\n He also added \u201cwe won’t support people who lobby against other industry players behind their backs.\u201d<\/p>\n Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards.<\/p>\n \u2014 CZ Binance (@cz_binance) November 6, 2022<\/a><\/p><\/blockquote>\n Cointelegraph understands that Binance\u2019s decision to liquidate the token is due to reports surrounding a recently leaked balance sheet from Sam Bankman-Fried-founded Alameda Research, which alleges billions of dollars worth of Alameda\u2019s assets are tied up in FTX\u2019s token. <\/p>\n Alameda Research CEO Caroline Ellison in a Nov. 6 tweet however said the balance sheet wasn\u2019t reflective of the true story, noting that the sheet in question is only for \u201ca subset of our corporate entities\u201d and other assets worth over $10 billion \u201caren\u2019t reflected there.\u201d<\/p>\n – the balance sheet breaks out a few of our biggest long positions; we obviously have hedges that aren\u2019t listed \u2014 Caroline (@carolinecapital) November 6, 2022<\/a><\/p><\/blockquote>\n\n
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– given the tightening in the crypto credit space this year we\u2019ve returned most of our loans by now<\/p>\n