Sam Bankman-Fried has spent hundreds of billions of dollars in saving cryptocurrency companies that are currently struggling.
Binance CEO Changpeng Zhao has revealed that he won’t do the kind of deals that Sam Bankman-Fried made with his companies FTX and Alameda Research. CZ made this statement during a podcast interview with Décrypter.
Last month, Alameda extended a $500 million line of credit to crypto broker Voyager Digital. The cryptocurrency broker filed for Chapter 11 bankruptcy earlier this week and the filing showed that Alameda itself owes Voyager $377 million.
Asked about Voyager and Alameda, CZ replied;
“It was surprising even to me, to be honest. I try not to comment on our competitors or our industry peers. But I would never do this kind of transaction. I would never say, ‘I’m going to invest in your business and then you lend me money.” I just wouldn’t invest in that business, I’d keep my money.
CZ was reluctant to discuss some of the other deals conducted by Bankman-Fried but he pointed out that Binance wouldn’t do those types of deals. He said;
“Personally, for me, and to a large extent for Binance, we like very simple offers. We like offers like ‘What’s your turnover?’ We don’t like deals where, “Hey, I owe you this money, you pay me back that much money, you invest in me, I give you more money in loans, and then you bail me out.” not just giving all the money back and going back to zero and talking about net, who owes money to whom?”
CZ said he has always maintained that bad companies should not be salvaged. He stated that;
“Do not perpetuate bad enterprises. Let them fail. Let other better projects take their place, and they will.
Binance is the world’s largest cryptocurrency exchange by market cap, with a daily trading volume of over $12 billion.
