Changpeng Zhao (CZ), the head of cryptocurrency exchange Binance, believes that the market will likely face "cascading effects" as its rival FTX went bankrupt with a massive hole in its balance sheet, the Financial Times reports.
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Speaking at a conference in Indonesia, CZ compared the ongoing drama on the crypto market to the global financial crisis back in 2008, saying those events are "probably an accurate analogy" to what's happening right now.
"With FTX going down, we will see cascading effects. Especially for those close to the FTX ecosystem, they will be negatively affected," he said.
Zhao's comments came after Binance had publicly refused to proceed with its acquisition plans, citing mishandled customer funds and alleged US agency investigations related to FTX.
The next day, FTX filed for Chapter 11 bankruptcy in the US, revealing in the document that its liabilities are ranging between $10 billion to $50 billion.
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