Is cryptocurrency exchange Binance facing the same fate as the collapsed FTX?

Thursday, December 22, 2022 - 21:11
Point Trader Group

Is cryptocurrency exchange Binance facing the same fate as the collapsed FTX?

Experts in the financial market have warned that the cryptocurrency platform (Binance) may face the same fate as the collapsed FTX platform, in a downward curve that would have devastating repercussions on the market.

The downturn, which began with the deterioration of cryptocurrency prices, has reduced confidence in crypto assets to the lowest level since the collapse of FTX, which declared bankruptcy in November.

For the “Binance” platform, which had announced the acquisition of FTX, to return and retract what it announced, the prevailing concern prompted a surge in withdrawals, which amounted to $ 6 billion within 3 days.

The audit firm (Mazar), which was supposed to “check the reserves” of the platform, suddenly decided to stop preparing this type of report in all cryptocurrency companies, considering that this type of report does not provide any information about debt.

Media confirms that US public prosecutors continue to investigate accusations of money laundering and violations of international sanctions against the company and its CEO, Changping Zhao.

"The steadfastness of Binance is an absolute necessity. Its collapse will be devastating for cryptocurrencies, and it is likely that a large part of the sector will fall with it," Dan Ashmore, an analyst at the Inves Center, who specializes in investments, stressed.

Starkiller Capital fund manager Les Drogon stressed that this would be a fatal blow to the sector.

So far, Changping Zhao's looks have not succeeded in containing the prevailing turmoil.

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