Binance to sell FTX token holdings amid questions over trading arm Alameda finances

Binance and FTX fighting

CZ said Binance will liquidate its remaining FTT tokens issued by the second-largest crypto exchange FTX on November 6.

This decision comes after CoinDesk reported  November 2 that FTX’s sister company, Alameda Research, may have solvency issues.

CZ said,

“Due to recent revelations that have [come] to light, we have decided to liquidate any remaining FTT on our books.”

In addition, Binance’s CEO mentioned that since Binance withdrew from FTX’s equity last year, it has received $2.1 billion worth of stablecoins BUSD and FTT.

According to a CoinDesk report from November 2, a financial report from Alameda Research revealed that as of June 30, the company’s debt accounted for approximately 54% of its assets, while a sizable portion of its assets were FTT, suggesting that the company’s solvency may be problematic.

However, on Sunday morning, the CEO of Alameda Research tweeted to dispel concerns about solvency, stating that “we have > $10b of assets that aren’t reflected there.”

Following this, CZ tweeted another tweet on November 7 saying,

However, it may take several months for Binance to sell the tokens in a way that “minimizes market impact,” according to Zhao.

Alameda CEO Caroline Ellison tweeted to respond to Zhao’s announcement on liquidating FTT.

According to a tweet from Ki Young Ju, cofounder and CEO of CryptoQuant, stablecoin reserves on FTX have dropped by 93% in the last two weeks and reached a low point in a year on Monday.

FTT’s price had dropped 5.31% over the previous day while its trading volume had increased 307.71%, according to CoinMarketCap.

Zhao tweeted on November 7 saying, “We gave support before, but we won’t pretend to make love after divorce. We are not against anyone,” adding, “But we won’t support people who lobby against other industry players behind their backs.”

Bankman-Fried responded to CZ in a Monday tweet thread.


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