Binance and other trading venues have vowed to publish proof of reserves as the crisis at Sam Bankman-Fried’s empire continues to reverberate.
Binance, the world’s biggest crypto trading venue, as well as smaller rivals including Crypto.com, OKX and Derebit have vowed to publish proof that they hold sufficient reserves to match their liabilities to customers.
FTX co-founder Sam Bankman-Fried: The exchange’s collapse has severely eroded confidence in the digital asset market.Coinbase, the US-listed exchange, has also sought to distance itself from the crisis that has engulfed FTX, the digital asset venue founded by Sam Bankman-Fried., has severely eroded confidence in the digital asset market.
Binance’s chief executive warned last week of the potential for a “cascading” crisis in the crypto sector in the wake of FTX’s failure, which he said could resemble the 2008 global financial crisis. FTX had garnered a valuation of $US32 billion after striking deals with big-name investors and was building a public profile through a string of sports sponsorships, such as securing naming rights for the Miami Heat arena.
Trading venues have also sought to distance themselves from what remains of FTX after the group said it was investigating abnormal transactions. Elliptic, a blockchain forensics firm, said on Saturday that there were indications that $US477 million in crypto assets had been taken from FTX late on Friday night.
Binance, meanwhile, paused deposits of FTT, a token issued by FTX to protect users. “We’ve noticed a suspicious movement of a large amount of $FTT by the token’s contract deployers,” the exchange said on Sunday, and offered suggestions on how to keep their digital assets safe.
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