Changpeng Zhao, CEO of cryptocurrency exchange Binance, talked about other crypto exchanges. He expressed his concern for traders after learning about the “trade fluctuations phenomenon” on other crypto exchanges. Here are the details…
Binance CEO criticizes an exchange
Fluctuations in crypto trading are a trading event where a trader’s buy or sell order gets stuck and moves down the list, allowing newer trade orders to take the lead. CZ’s concerns over volatility are not explicitly targeted at any particular exchange. However, the crypto community on Twitter assumed it was FTX, a crypto exchange run by Sam Bankman-Fried. Responding to the community’s response, citing “tension” as a well-known and accepted condition, CZ added:
You all knew and said nothing. We need to fight bad actors.
CZ also reached out to VIP traders at Binance who allegedly knew about their illegal trading activities. The indirect claim against FTX fits perfectly with the timeline when the Federal Deposit Insurance Corporation (FDIC) placed a stop order on the exchange and four other crypto companies.
https://twitter.com/cz_binance/status/1560753870653079552
The FDIC targeted these companies
According to the FDIC; It is stated that FTX US, SmartAssets, FDICCrypto, Cryptonews and Cryptosec misled investors by claiming that their products are insured by the FDIC. Reacting to the order, FTX US chairman Brett Harrison deleted a tweet voicing allegations that the FDIC opposes. However, the crypto community on Twitter noted many other instances where Harrison falsely claimed FDIC insurance. To soften things up, the SBF has revealed its intention to work with the FDIC in the future. He reiterated the fact that “FTX US is not FDIC insured.”
— AG123 (@AG123321GA) August 19, 2022
In line with the developments above, FTX is reportedly starting to block accounts sending cryptocurrencies via zk.money, a special layer-2 chain provided by Aztec Network on Ethereum. In response, the SBF supported FTX’s decision to monitor accounts referring to anti-money laundering (AML) compliance. However, he denied these allegations, saying “but this does not mean that the accounts have been frozen”.
FTX said Industry-leading third-party transaction monitoring tools ensure users do not interact with high-risk addresses, it is recommended not to use the mixing service in the future, otherwise it may endanger the FTX account.
— Wu Blockchain (@WuBlockchain) August 19, 2022
FTX Exchange is a leading centralized cryptocurrency exchange specializing in derivatives and leveraged products. Founded in 2018 by MIT graduate and former Jane Street Capital internationally traded funds trader Sam Bankman-Fried, FTX offers a range of trading products including derivatives, options, volatility products and leveraged tokens. It also provides spot markets on over 100 cryptocurrency trading pairs such as BTC/USDT, ETH/USDT, XRP/USDT and native token FTT/USDT.
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