It may be one last dagger, but Binance CEO Changpeng Zhou just couldn’t resist taking a quick look at fallen FTX CEO Sam Bankman-Fried.
That is a reference to the role the cryptocurrency titan known as CZ played in the demise of FTX. He set the stage for FTX’s collapse when he said he would sell FTT tokens, which were then valued at $2.1 billionto support the exchange.
That caused FTX customers to rush, the token plummeted, and led to a very brief attempt by Binance to rescue FTX.
Binance’s swift due diligence efforts are now more understandable in light of John Ray’s bankruptcy filing, which exposed the lack of even basic controls at FTX.
Ray said balances of clients’ deposited crypto assets were not recorded as assets on the balance sheet. So far, the recovery team has found $564 million in cash and $740 million in crypto in cold wallets, and they’re not sure they can determine how that cryptocurrency was allocated.
Read also: 10 Crazy Things Described in FTX’s Bankruptcy Filing