Binance CEO Changpeng Zhao doesn’t see the deal to take over rival cryptocurrency exchange FTX as something to brag about.
In a memo to Binance employees Wednesday, first reported by the Financial Times and Bloomberg, he warned FTX’s collapse isn’t necessarily good for the firm or the broader crypto industry.
“Do not view it as a ‘win for us’,” he said. “User confidence is severely shaken. Regulators will scrutinize exchanges even more. Licenses around the globe will be harder to get. And people now think we are the biggest and will attack us more.”
Zhao, who also goes by “CZ,” indicated that the deal was wrapped up quickly, noting that he had received a call from FTX’s Sam Bankman-Fried less than 24 hours earlier and that Binance didn’t plot out a master plan for the acquisition.
“I was surprised when he wanted to talk. My first reaction was, he wants to do an OTC deal . . . But here we are,” he said, adding that he ordered Binance to stop sales of FTT, a token issued by FTX, after the call.
