Binance to Liquidate its FTT Holdings, Alameda Offers to Buy Tokens

  • CEO Changpeng Zhao clarified that the decision was made due to “recent revelations”, referring to reports regarding Alameda Research’s leaked balance sheet.
  • The CEO of Alameda explained that the balance sheet did not show all of the company’s assets, and also offered to buy Binance’s FTT holdings at $22 per token.
Binance CEO Changpeng Zhao

Binance CEO Changpeng Zhao. CryptoMonedaseICOs

Cryptocurrency exchange Binance will be liquidating all of its FTX Token (FTT) holdings, a decision made due to “recent revelations that have came to light”, CEO Changpeng “CZ” Zhao said via Twitter on 6 November.

According to the announcement, Binance will try to sell off all of its FTT holdings in a way that will have a minimum impact on the crypto market, which CZ said could take “a few months to complete”. While the exchange did not reveal how much FTT it was about to liquidate, CZ explained the company had received roughly $2.1 billion worth of Binance USD (BUSD) and FTT during its exit from FTX equity last year, and that the sell off was “just post-exit risk management” lesson learned after the fall of Terra’s Luna Classic (LUNC). He tweeted:

The “revelations” CZ is referring to are most likely the recently leaked balance sheet from Alameda Research, which alleges that billions worth of Alameda’s assets were tied up in FTT, pointing to the close connection between Alameda and FTX exchange. The leaked document showed that Alameda owned around $5.8 billion in FTT tokens, and that it had $14.6 billion in assets and $8 billion in liabilities, including $7.4 billion in unidentified loans.

Alameda Research’s CEO, Caroline Ellison, took to Twitter on Sunday to clarify that the leaked balance sheet was for a “subset of our corporate entities”, and that more than $10 billion worth of assets were not reflected on it. She further claimed that Alameda had undisclosed hedges in place, and that the company had already returned the majority of its outstanding loans. Ellison also noted that Alameda will “happily buy” all of Binance’s FTT holdings at $22 per token, which would be one way to minimize the impact on the crypto market.

Blockchain data shows that an unknown wallet had moved 23 million FTT tokens — worth around $523 million at the time of writing — to a wallet owned by Binance on Saturday, with CZ later confirming that this was only a part of Binance’s FTT holdings.

Related Coverage
Binance and Mastercard Release Prepaid Crypto Card in Brazil
  • Currently in its beta launch phase in Brazil, the Binance Card will allow its holders to make payments and purchases using 13 supported cryptocurrencies.
  • Brazil has become the second country in Latin America to receive the product, following a similar announcement in Argentina in August 2022.
January 30, 2023, 5:56 PM


Australian Regulator had Concerns Over FTX Months Before Collapse
  • Australia’s financial regulator raised concerns over some products offered by FTX Australia shortly after it began operating in the country.
  • Internal documents show the regulator requested information from the exchange three times, and that FTX Australia was under “surveillance activity” prior to its collapse.
FTX’s Creditor List Includes Big Tech, Airlines, Government Agencies
  • Bankrupt crypto exchange FTX has filed a massive 115 page document listing every entity the company owes money to, from Big Tech players to government agencies.
  • The names of close to 9.7 million individual customers were redacted from the document as per Judge John Dorsey’s instructions.