CZ says that FTX paid $43 million to run Binance FUD in the media

Changpeng Zhao, the head of Binance, thinks that FTX paid for most of the FUD reports about Binance recently.

FUD about Binance paid for by FTX?

The CEO of Binance held a “Ask Me Anything” session on Twitter. He brought up the fact that FTX was recently funding the FUD that was going on around his crypto network.

Zhao said that FTX paid more than $43 million to a crypto news site to write bad things about the Binance exchange. The CEO said that at first, he did pay some attention to the bad news that was going around.

Will do an ad hoc Twitter Spaces AMA in 15 min, 10:15 UTC. 30 min duration.

— CZ 🔶 Binance (@cz_binance) January 24, 2023

When FTX went down, it caused a chain reaction in the crypto industry that cost billions of dollars. There was a lot of pressure on crypto exchanges to show proof of their reserves, but investors still didn’t trust them, so speculation kept going.

In December, there were several FUD attacks on Binance. There were questions about the proof of reserves that the Binance exchange put out. Some people have pointed out that the exchange’s auditor used a method chosen by Binance to figure out the proof of reserves. Others had doubts about Binance’s ability to pay its bills.

On December 12, there were rumors that US prosecutors would arrest Zhao and other top Binance executives. Even though the FUD was spread in many ways, Changpeng Zhao said that FTX was the main one to blame.

Changpeng Zhao praised the cryptocurrency community for not being easily fooled by clickbait titles, even though there was talk of FUD. He said that a lot of crypto users today are smart enough.

Problems between FTX and Binance come from fights between Changpeng Zhao and Sam Bankman-Fried, who used to be the head of FTX (SBF). The SBF’s call for more crypto regulation was a disagreement between the two.

SBF said earlier this month that Zhao sped up the fall of FTX. Zhao’s tweet caused Alameda’s research to go bankrupt.

What else is in the AMA?

The head of Binance also talked about artificial intelligence (AI) and the crypto industry.

In response to a question about this, Zhao said that he thinks there will be more use of AI technology in the blockchain landscape. He pointed out that AI’s ability to help with risk management problems could help keep future blockchain projects from failing.

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