Tuesday, April 23, 2024

BNB Plunges By Over 5% Amid FTX’s Bankruptcy Proceedings.

Changpeng Zhano, Binance CEO, assured users that it is financially OK despite the platform’s native token BNB falling 15% in the past week. It has been down by 5.19% in the last 24 hours and is trading at $238.79.

Crypto market experts believe FTX’s bankruptcy proceedings are looming over Binance. CZ’s crypto exchange was the first outside investor in Sam Bankman-Fried’s company. Binance received about $2.1 billion when it exited its equity position in FTX in 2021. CZ told CNBC’s Squawk Box that there was nothing to worry about. He brushed off concerns that Binance could have that money clawed back as FTX struggles through the bankruptcy court and trustees seek to retrieve any fraudulent conveyances made by FTX to outside businesses or investors.

When FTX was on the brink of collapse, its founder and CEO SBF had tried to reassure users and investors that the company’s assets were fine. But executives knew that it was in the midst of a liquidity crunch that eventually forced the firm into bankruptcy. Now, SBF faces fraud and money laundering charges.

Zhao outlined that around $1.14 billion of net withdrawals, contradicting Nansen’s claims of $3 billion, occurred on Tuesday. He shared that this wasn’t the highest withdrawal Binance processed. CZ said this doesn’t even fall in the top 5. He tried to assure that the situation had stabilized. A spokesperson for Binance said the crypto exchange passed an extreme stress test because it runs a very simple business model. Binance holds assets in custody and generates revenue from transaction fees.

All for the test.

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