Binance CEO Changpeng Zhao has warned about “tough months ahead” for industry while stressing that exchange would survive crypto winter
In a memo sent to staff, Binance CEO Changpeng Zhao attempted to quell concerns regarding the cryptocurrency giant’s financial position, claiming that the company will “survive” the ongoing crypto winter.
At the same time, the cryptocurrency mogul warned about several “bumpy” months ahead.
This comes after Binance recorded $3 billion worth of withdrawals in just 24 hours, according to blockchain security firm Nansen. In a tweet, Zhao says that withdrawals have stabilized. Prior to that, he tweeted that it was important to “stress test” withdrawals.
The world’s largest exchange is suffering from deteriorating crypto sentiment following the downfall of FTX, Binance’s main rival. Former FTX CEO Sam Bankman-Fried, who once held the title of the world’s richest person under 30, was arrested earlier this week in the Bahamas at the request of the U.S. government. The disgraced entrepreneur was filmed leaving the court in handcuffs on Tuesday. Damian Williams, the federal prosecutor overseeing the case, said that Bankman-Fried committed “one of the biggest frauds in American history.”
In the meantime, Reuters recently reported that roughly half a dozen U.S. federal prosecutors are considering bringing criminal charges against Zhao, but the investigation is yet to reach a definitive conclusion.
Zhao continues to casually dismiss any unflattering coverage as “FUD” (fear, uncertainty and doubt) to assuage users’ concerns.
Notably, Bankman-Fried claimed that FTX was “fine” just days before the exchange filed for bankruptcy.