Binance CEO calls for more transparency after dropping FTX bailout

Binance CEO Changpeng Zhao has urged his team to improve transparency, proof of reserves and other internal controls, to restore confidence in the industry after walking away from a bailout of FTX.com.

In a letter to employees, posted on Twitter, Zhao stressed that FTX going down is not good for anyone in the industry.

“User confidence is severely shaken. Regulators will scrutinize exchanges even more. Licenses around the world will become harder to get. And people now think we’re the biggest and will attack us more,” he wrote. 

Zhao was tweeting after walking away from a deal to takeover FTX.com. In a separate tweet, he said that he was dropping the deal following corporate due diligence, as well as news reports of U.S. agency investigations. 

Zhao warned of wild price swings as the FTX case pans out, but also told his employees not to focus on the prices, but on building products people use.

Crypto prices have plunged this week in the wake of rumours about FTX.com’s financial health. In a series of fast-moving events, Zhao on Monday said he was selling off $530 million of FTT, the native token of FTX.com, as part of a decision to unwind his entire holdings. Then in an about-face on Tuesday, Zhao announced that Binance had responded to a call for help and was in talks to buy the stricken exchange, pending due diligence. 

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