Changpeng CZ Zhao, the CEO of Binance has said the crypto exchange is liquidating its entire FTX token holdings. While Zhao makes reference to revelations that have come to light, he is yet to explain what he means.
This development comes weeks after the founder and CEO of FTX Sam Bankman-Fried faced criticism over regulatory proposals which surfaced in a blog post where he recommended restrictions regarding DeFi.
Binance had received the funds in FTT as part of its exit from an equity position in FTX last year even though the exchange had it since 2019.
According to Zhao, the liquidation will take a few months due to market conditions and limited liquidity. He notes that it will be done without impacting FTT.
While Zhao says the decision to liquidate its position is not a shot at its competitor, FTT has tanked by 9.5% in the last 24 hours up from $25.55 to $23.03.
Meanwhile, Etherscan shows that 22,999,999 FTT worth $584 million was moved from a wallet to Binance and Zhao has since confirmed in a tweet that the shift is part of the move to liquidate the exchange’s position.