Binance CZ says users share blame for trusting FTX and should take responsibility



During an AMA (ask me anything) session on Twitter Spaces on November 14, Binance CEO Changpeng Zhao, also known as CZ, urged crypto users to take responsibility for their investment decisions and not put all the blame on others when things go wrong.

“As a user, you also have a responsibility – you can’t just put all the blame on other people. When bad things happen, if you blame all the blame, if it’s always on other people, you will never succeed.You also always look at the person most responsible to yourself, which is yourself.

The statement came in response to a question about whether Binance should refund users who lost money in FTX. A participant in the AMA alleged that Binance gave credibility to FTX and could also have taken advantage of user-owned funds. The questioner asked CZ if Binance should return the money he recently earned from selling his bag of FTX utility token, FTX Token (FTT).

Binance first invested in FTX in December 2019. In July 2021, the company sold its shares for $2.1 billion of Binance USD (BUSD) and FTT. Last week, Binance announced that he would sell all its FTTs over the next few months. However, Binance was unable to complete the sale before FTX suffered a liquidity crunch and filed for bankruptcy.

CZ responded by highlighting the public nature of Binance’s transactions, noting that the company entered early and exited early, and that both transactions were publicly visible. “We didn’t hide it, and we didn’t leak it,” he said.

He also said that Binance only sold a small amount of its FTT, claiming that the rest is still in the company’s possession and that it suffered losses on the holding like everyone else:

“We had $580 million from FTT. We sold a small part of it. We still have a big bag. So I think we acted very ethically.

Despite this defense of Binance’s actions, CZ also sought to find common ground with the questioner. He said Binance will try to help FTX users as much as possible in the spirit of industry growth. On the other hand, he said he doesn’t want to “create a situation where everything that happens in the industry, Binance has to pay for it.”

At the end of his response, CZ admitted that large institutional investors share some responsibility for giving credibility to FTX:

“The resume [venture capital] investors, including us, why did we invest in them? I think that accusation was actually somewhat accurate. All venture capitalists who have invested in FTX have made a mistake, and many of them are very professional investors. Why didn’t they discover this problem? »

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