Perhaps it’s one last dagger, but Binance CEO Changpeng Zhou just could not resist a little dig at the fallen FTX chief executive Sam Bankman-Fried.
That’s a reference to the role the cryptocurrency titan known as CZ played in the demise of FTX. He put in motion the seeds for FTX’s collapse when he said he would sell FTT tokens, then valued at $2.1 billion, backing the exchange.
That sent FTX customers scurrying, the token plunging, and triggered a very brief attempt by Binance to rescue FTX.
Binance’s quick due diligence efforts are now more understandable in the light of the bankruptcy court filing from John Ray, who detailed the lack of even basic controls at FTX.
Ray said balances of customer crypto assets deposited were not recorded as assets on the balance sheet. So far the recovery team been able to find $564 million in cash and $740 million of cryptocurrency secured in cold wallets, and they’re not sure if they can determine how that cryptocurrency was allocated.
Also read: 10 crazy things detailed in FTX’s bankruptcy filing