Binance to liquidate its entire FTX Token holdings after recent revelations

The CEO of cryptocurrency exchange Binance, Changpeng CZ Zhao, said his company will liquidate the entirety of its position in FTX Token (FTT), the native token of competing exchange FTX.

In a Nov. 6 tweet, Zhao said the decision was made after recent revelations that have came to light.

In a later tweet, CZ explained the FTT liquidation was just post-exit risk management referring to lessons learned from the fall of Terra Luna Classic (LUNC) and how it impacted market players.

He also added we won't support people who lobby against other industry players behind their backs.

Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.

— CZ Binance (@cz_binance) November 6, 2023

Cointelegraph understands that Binances decision to liquidate the token is due to reports surrounding a recently leaked balance sheet from Sam Bankman-Fried-founded Alameda Research, which alleges billions of dollars worth of Alamedas assets are tied up in FTXs token.