Binance CEO CZ: Potential acquisition of FTX is ‘not a win’

The person known as SBF was not too long ago hailed as crypto’s “JPMorgan” as he rode to the rescue of distressed rivals in the course of the crypto winter’s first downturn, a lot because the legendary banker did himself a century in the past. 

Withdrawal requests from SBF’s platform intensified after Binance CEO Changpeng Zhao, also called CZ, tweeted that his change would promote its holdings of FTX’s FTT token. In different phrases, the crypto world’s onetime rescuer wanted a bailout from the identical billionaire who hastened his demise.

Regardless that he’s poised to return out on prime of the “FTX assassination,” as Fortune’s Jeff John Roberts writes, CZ is cautioning crypto watchers in every single place, together with his personal staff.

“FTX happening is just not good for anybody within the business,” he wrote in a memo to Binance’s employees, which he posted to Twitter on Wednesday. 

“Don’t view it as a ‘win for us,’” he continued. “Person confidence is severely shaken. Regulators will scrutinize exchanges much more. Licenses around the globe can be more durable to get. And folks now suppose we’re the most important and can assault us extra.”

However CZ additionally tried to reassure, saying that Binance is used to “being open and leaning into headwinds.” He additionally stated there’s “a whole lot of robust work forward.”

Within the memo, CZ stated the proposed acquisition was not a “grasp plan,” however reasonably, SBF known as him lower than 24 hours earlier than it was introduced. CZ stated he had little information on FTX’s inner state earlier than that decision. “I used to be stunned when he wished to speak.”

CZ has since advised staff to not commerce FTT tokens, and stated they’d cease promoting them as a corporation. 

Nevertheless, the deal is just not closed, and it may not shut. After reviewing FTX’s inner knowledge and mortgage commitments, Binance may not undergo with the acquisition, an individual acquainted with the matter advised CoinDesk. Individually, Bloomberg reported that Binance has discovered “a monetary black gap — a spot between liabilities and property at FTX that’s most likely within the billions, and presumably greater than $6 billion,” additionally citing one individual acquainted with the matter, including that Binance doubtless wouldn’t shut the deal. 

Binance and FTX declined CoinDesk’s request for touch upon the present standing of the proposed deal; neither instantly responded to Fortune‘s request for remark.