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The head of the world's largest cryptocurrency exchange Binance says no one can protect themselves from "bad players" after the collapse of Sam Bankman-Fried's FTX.
Speaking at a meeting of business leaders on the Indonesian island of Bali, where the G20 summit of world leaders is taking place, Changpeng Zhao called for more regulation of the cryptocurrency industry.
Zhao, who goes by the name “CZ” in the crypto industry, did not specifically mention his former arch-rival, but did address what the collapse of FTX would mean for the trillion-dollar crypto industry.
"Honestly, if a person is very good at lying and is very good at pretending that something is wrong, [if] someone wants to break the law, the law will not stop them," Zhao said.
Digital asset exchanges are rushing to assure customers their funds are safe after FTX crashed on Friday.
Binance, along with smaller rivals like Crypto.com, OKX, and Deribit, have pledged to publish proof that they have enough reserves to cover their liabilities. Coinbase, a US-listed exchange, has tried to distance itself from the crisis.
The sudden collapse of FTX and Bankman-Fried's Alameda Research trading store, once considered industry mainstays, severely undermined confidence in the digital asset market. The Financial Times reported on Saturday that FTX had less than $1 billion in tradable assets versus $9 billion in liabilities before bankruptcy.
FTX General Counsel Ryan Miller said over the weekend that FTX is “investigating portfolio movement anomalies related to the consolidation of FTX balances across exchanges.”
Blockchain forensics firm Elliptic said it received initial indications that $473 million worth of cryptocurrency was stolen from FTX on Friday night.
The announcements sparked fears that FTX could be hacked as activists sought billions in digital tokens that would eventually be used to pay off creditors in the bankruptcy of the cryptocurrency group, which was recently valued at $32 billion.
The FTX implosion shed light on two US accounting firms that the cryptocurrency exchange said it used to audit its books.
It also raises questions about the political financing associated with the cryptocurrency industry. Before the collapse of FTX, Sam Bankman-Fried was the second largest donor to the Democratic Party after George Soros, spending $36 million during the midterm elections. He has become one of the most prominent cryptocurrency advocates in Washington, supporting legislation on digital assets and appointing former regulators as advisers.
One hedge fund admitted that it was surprised by FTX's sudden drop.
Go deeper. Changpeng Zhao's attempt to bail out his main rival will be remembered as "one of the biggest corporate busts in history," according to one industry watcher, and will tip the balance of power in favor of the trillion-dollar industry. Basic Binance.
Five more stories in the news
1. Chinese real estate stocks are on the rise. Shares of some of China's biggest real estate companies rose sharply today as Beijing saw the unveiling of a 16-point plan to bail out the indebted sector as a key moment that could lead to a recovery. These measures include extending the real estate debt ratio for lenders by one year.
2. Northern Trust ordered to upgrade after pension crisis British regulators have ordered the US trust bank to upgrade its operating systems after it was pressured to make margin payments during the latest pension fund crisis, they said. to the Financial Times people familiar with the situation.
3. The EY programming department must vote in favor of the partners in the termination plan .
4. The terrorist group responsible for the attack in Turkey claimed that the attacker was a Syrian woman who "confessed" her links with the PKK/PYD.
5. Democrats retain control of the US Senate after Nevada victory Democrats retain their majority in the US Senate after Katherine Cortez Masto won the Nevada election. Cortés Masto's victory gave Democrats their 50th seat out of 100, enough to maintain the majority that Vice President Kamala Harris would carry in the final vote. Now all eyes are on the Dec. 6 runoff in Georgia, where incumbent Democrat Raphael Warnock hopes to defeat his Trump-backed Republican challenger, former NFL star Herschel Walker.
the next day
Joe Biden and Xi Jinping met for the first time as leaders on the sidelines of the G-20 summit in Bali. The high-stakes meeting is the most important test of whether the two sides can reverse a sharp deterioration in relations.
Elon Musk will try to prove he owns Tesla's multi-billion dollar pay package through a lawsuit brought by shareholders who accuse the electric car maker of enriching its co-founder and CEO. their expenses
Today, FT Schools is hosting a free webinar with leading Financial Times journalists and guests on the economy, from green energy to government budgets and Brexit. See the full agenda and register here to submit your questions to the group .
What else are we reading?
The global real estate market is heading towards a severe recession At the end of 2021, the situation in the global real estate sector seems optimistic. There has probably never been a better time to own a home. Less than a year has passed and the picture is completely different, write business journalist Valentina Romei and Financial Times head of data visualization Alan Smith.
What the midterms mean for investors could have serious implications for the economy and markets, Kroll said Megan Green, chief economist at the global firm. But he says this is not one of those elections. Whatever the end result, he argues, one thing is clear: the US government will remain deeply divided. But he says inertia and stability can be bad for investors.
Negotiation has become more difficult as M&A consulting has become commonplace in the age of free money . When the economy is strong, transactions and related revenues increase. US business and corporate finance editor James Fontanello Hahn writes that companies do less business during downsizing periods. But he says the current economic climate has left most American CEOs scratching their heads.
China's elite seek safety abroad As Xi Jinping enters an unprecedented third five-year term in power, hordes of wealthy Chinese have fled the world's most populous country. Some of those who left cited difficult working conditions, while others feared the direction of future government policies.
The Normalization of the Far Right Continues Many advanced democracies have seen a normalization of the liberal far right, and fighting it is not easy. It is more fundamental than the struggle for political representation. It's also a struggle to define normality, writes Timothy Garton Ash.
Why is the iPad the pilot's new best friend ? The humble tablet is a big change in my job since I started flying as a commercial pilot nearly two decades ago, writes Mark Van Honaker. Pilots use the iPad as a library, atlas and tool for flight planning, briefings and check-in, he wrote in his latest Financial Times column.
alcohol
Ridge Vineyards, the Silicon Valley winery founded by four Stanford academics in their spare time, is celebrating its 70th anniversary this year, and as part of the celebration, wine critic Jancis Robinson was invited to sample its vintage bottles.
Finally, thanks to those who voted on the Friday ballot . Two-thirds of readers believe that the United States will not avoid a recession next year. Let's hope they're wrong. I'll get back to your inbox tomorrow - Gordon
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