On November 6, 2022, Changpeng Zhao, CEO of Binance, the largest crypto exchange in the industry, liquidated all FTX tokens on the platform.
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.
— CZ 🔶 Binance (@cz_binance) November 6, 2022
He made this known on his Twitter page in the late hours of the day, including the reason for the management’s actions.
Simply put, their actions were to prevent what happened during the liquidation of the LUNA platform.
When the LUNA platform crashed, several billions of dollars went down the drain, and all stakeholders/token holders were greatly affected.
Some even lost their life savings overnight because they were left with valueless tokens.
There are rumors of FTX going bankrupt due to its affiliation with Alameda Research, a crypto platform operating since 2017.
The platform is facing financial charges and, if found guilty, may go bankrupt.
On November 7, they reported spending stablecoins worth $257 million on the FTX platform in just 24 hours.
This has aroused suspicion regarding the actual owner of FTX and made people wonder if Alameda Research owns the platform.
If any of these suspicions are true, then FTX will be severely affected by the outcome of the impending lawsuit.
All these chains of events triggered the actions of CZ, who had a year earlier sold all his stakes on the FTX platform.
Some crypto enthusiasts have commended CZ for his strategy and recent decision on Twitter.
One such individual was Ran Neuner, a crypto trader and founder of crypto banter. He commented on his CZ tweets, saying that he waited for the perfect moment to liquidate his tokens.
Nevertheless, there has not been any proven evidence to show that money has exchanged hands between the two parties.
In addition, although Bankman Fried owns both platforms, they operate under different arms.
Therefore, no one can say precisely what the outcome of the impending lawsuit will be.
