Binance vs. FTX: CZ Blames “Bad Players” for Instability on Crypto Exchanges

The CEO of cryptocurrency exchange Binance, Zhang Ping “CZ” Zhao, alarmed traders after learning about the infamous phenomenon of trading instability on other cryptocurrency exchanges.

Instability in cryptocurrency trading is associated with a trading event where an investor’s buy or sell order gets stuck and moves down the list, allowing newer trading orders to pass through.

While CZ’s concerns were not explicitly targeting any particular exchange, the crypto community on Twitter assumed it was a covert attack on FTX, a cryptocurrency exchange led by Sam Bankman Fried. In response to the community’s reaction that “instability” is a well-known and accepted condition, CZ added:

“You all knew and said nothing. We need to fight the bad players.”

CZ also contacted important traders on Binance, who allegedly confirmed knowledge of illegal trading activities. The indirect allegation against FTX coincides perfectly with the timeline in which the FDIC issued a cease-and-desist order for the exchange and four other cryptocurrency companies.

According to the FDIC, FTXUS, Smart Assets, FDIC Crypto, CryptoNews, and CryptoSec, they allegedly misled investors by claiming that their products were FDIC insured. In response to the matter, FTXUS President Brett Harrison deleted a tweet containing the allegations, which were opposed by the foundation. However, the cryptocurrency community on Twitter was quick to point out several other cases when Harrison falsely claimed to have FDIC insurance.

In an effort to mitigate the free fall, Sam Bankman-Fried revealed his intent to work with the FDIC in the future while emphasizing the fact that “FTXUS is not FDIC insured.” In parallel with the above developments, it was reported FTX has begun blocking accounts that sent cryptocurrency through zk.money, a private Layer 2 chain that Aztec Network offers on Ethereum.

In response, Sam Bankman supported FTX’s decision to monitor the accounts citing anti-money laundering (AML) compliance. But he denied the allegations, adding that “this does not mean freezing any accounts.”

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