Binance CEO Zhao Changpeng has announced the company’s decision to sell all of the FTT tokens still in its books.
The decision is coming barely a year after Binance received about $2.1 billion cash from selling much of its stake in FTX, a competing crypto exchange.
CZ, as he is known on Twitter, noted that the decision to liquidate all the FTT on the company’s books was “due to recent revelations that have come to light”. He did not give further details regarding the revelations.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 Binance (@cz_binance) November 6, 2022
Zhao further noted that “we think this will take a few months to accomplish due to market conditions and restricted liquidity.”
According to a person familiar with the exchange who asked to remain anonymous because the information is private, Binance possesses around 23 million FTX tokens valued at about $529 million at current pricing.
In the previous 24 hours, the coin decreased by nearly 7% to $23.06, according to tracker CoinMarketCap.
According to a November 2nd article on the news website CoinDesk, the FTT token makes up a sizable portion of the balance sheet of Alameda Research, a cryptocurrency trading business owned by Bankman-Fried.
Meanwhile, the Chief Executive Officer of Alameda, Caroline Ellison, stated on Sunday that “that exact balance sheet is for a portion of our business companies, and we have >$10 billion of assets that aren’t shown here.”
“Alameda will gladly buy all of your FTT sales from you today at $22 if you want to minimize the market impact.”
When prompted for additional comment, she remained silent.