Binance CEO Changpeng Zhao, also known as CZ, has alleged that cryptocurrency exchange FTX paid $43 million to a crypto news outlet that regularly publishes negative articles about Binance.
The claim was made during a Twitter space talk, where CZ discussed various topics related to the crypto industry.
CZ stated that traders with short positions often look to “generate negative news” to improve their trades. He acknowledged that there are crypto skeptics, such as Peter Schiff, who criticize the industry, but said that he is “fine” with it as “they don’t get it, they don’t understand it.”
However, he admitted to paying attention to the negative press allegedly funded by FTX. CZ said: “I don’t think it’s going to stop, but I don’t think it’s going to bother us that much going forward.”
The Binance CEO praised the ability of people to “come to their own judgments” and stated that “people are pretty smart today… most people are no longer fooled by clickbait titles.”
He also talked about the use of AI in Binance’s business, stating that around 75% of Binance’s customer support is handled via AI, along with risk management, transaction monitoring, fraud detection, and market manipulation detection.
CZ also believes that there will be further implementation of AI technology within the blockchain space, particularly in relation to analyzing data and detecting critical changes in risk.
He said: “With machine learning becoming more and more mature and stronger, there will be more and more applications.”
The ability of AI to mitigate the difficulties of managing risk within a complex on-chain environment could be crucial to blockchain projects in the future, as risk management was a critical factor in the failure of many crypto exchanges and lending services throughout 2022.
FTX has not yet responded to CZ’s allegations.