DA Davidson Research Director Gil Lauria and Duke Financial Economics Center Policy Director Lee Reiners discuss the issue of cryptocurrency as the FTX crisis continues to unfold in “The Claman Countdown.”
Cryptocurrency exchange Binance has made an important decision regarding the tokens of FTX, the rival exchange that filed for bankruptcy protection on Friday.
Binance has stopped accepting deposits of the FTT token for FTX on its platform, which is CEO Changpeng Zhao He said on Sunday.
He also urged other competing exchanges to follow suit.
On Saturday, FTX said it had detected unauthorized access, and analysts said hundreds of millions of dollars in assets had been removed from the platform in “suspicious circumstances.”
FTX confirms ‘unauthorized transactions’ amounting to $1 billion in CRYPTO reported
Binance CEO Changpeng Zhao ((AP Photo) / AP Newsroom)
“(Binance) has suspended FTT deposit, to prevent the possibility of additional questionable supplies affecting the market. We will monitor the situation,” CEO Zhao said in a tweet.
In another tweet, he added: “The FTT contract publishers have moved all remaining FTT supplies of $400M, which has to be unlocked in batches. Not sure what’s going on.”
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The sudden and rapid collapse of FTX came after the company – which is facing a liquidity crisis – agreed to it Selling itself to compete with Binance for an undisclosed amount. Clients fled the exchange after they became concerned about whether FTX had enough capital.
But Binance the world largest crypto exchange, I backed out of the non-binding deal after taking a look at FTX’s notebooks, at which point it became clear that the exchange’s smaller problems were too big to be resolved.
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CEO Sam Bankman-Fred warned investors earlier this week that without an imminent infusion of $8 billion in cash, the company may have no choice but to file for bankruptcy.
Reuters contributed to this report.
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